Question
2. Listed below are several terms and phrases associated with current liabilities. Pair each item in the first column (by number) with the item in
2. Listed below are several terms and phrases associated with current liabilities. Pair each item in the first column (by number) with the item in the second column that is most appropriately associated with it.
Loss is reasonably possible and can be reasonably estimated.
Cash, short-term investments, and accounts receivable all divided by current liabilities.
Loss is probable and can be reasonably estimated.
Incurred on a notes payable.
Social Security and Medicare.
Classifying liabilities as either current or long-term helps investors and creditors assess this.
Interest expense is recorded in the period interest is incurred rather than in the period interest is paid.
Long-term debt maturing within one year.
Unsecured notes sold in minimum denominations of $25,000 with maturities up to 270 days.
Gift cards.
Acid-test ratio ____
Recording a contingent liability ____
Unearned revenues ____
Current portion of long-term debt ____
FICA ____
Accrual accounting ____
Disclosure of a contingent liability ____
Interest expense ____
Commercial paper ____
The riskiness of a business's obligations ____
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