1.All of the following are generally considered current liabilities on a company balance sheet except

Wages Payable

Interest Payable

Bonds Payable

Taxes Payable

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2.If a one-year company loan spans equally over 2 fiscal periods, but interest is set to be paid when the loan amount itself is due, the company would

Still pay cash out for half the interest at the end of the first fiscal year to keep its records correct

Accrue the appropriate amount of interest payable at the end of the first fiscal period

Increase the Loan Payable amount by the interest amount accrued at the end of the first fiscal period

Do nothing until the interest payment itself is actually due

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3.If a firm has a warranty obligation on its product that is redeemed by the customer for cash, the firm would

		Record a warranty payable at the time of the redemption
		Reduce the already recorded warranty payable and cash for the amount of the claim
		Do nothing and just fix the product
		Reduce revenues and retained earnings at the time of the warranty redemption

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4.If a company collects sales tax on its products for the state in which it operates its business, it would

Include the amount in Revenue

Include the amount as an expense

Record a Sales Tax Payable until it is due to the state

Put the cash in a box under the counter

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5.An installment loan generally has all of the following features except

The cash payment per period by the borrower is the same amount each time

The amount of the payment applied to interest decreases over time

The amount of the payment applied to interest increases over time

The amount of the payment applied to the principal increases over time

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6.A pre-approved financing plan that allows companies to borrow and repay funds as needed up to the maximum amount set by the creditor and that is often used for relatively short-term borrowing to finance varying business needs is

		Trade credit
		A Line of Credit
		An account payable
		A debit card