1. Current liabilities:

1. Finance the equity of the company.
2. Are obligations that will be satisfied within one year or within the current operating cycle.
3. Are recorded at market value.
4. Are indications of a companys capital structure.

2. The current ratio is:

1. a measure of solvency.
2. calculated as the ratio of quick assets to current liabilities.
3. calculated as current assets minus current liabilities.
4. calculated as the ratio of current assets to current liabilities.

3. The term 2/10, n/30, means:

1. If payment is not made within two days, the full amount must be paid within 10 days.
2. A 10% discount is available if payment occurs within the first thirty days.
3. A 2% discount is available if payment occurs within the first ten days.
4. A 2% discount is available if payment occurs within the first thirty days.

4. Notes payable:

1. Are agreements to pay interest at regular intervals with the principal paid on the notes due date.
2. Have interest added to the amount before the borrower receives the loan proceeds.
3. Represent the portion of a long-term liability that will be paid within one year.
4. Are amounts owed that are represented by a formal contract.