Chapter 9 Questions

1. What distinguishes a current liability from a long-term liability?
2. Explain how GST that is paid by consumers is a liability of the store that sold the merchandise. To whom is GST paid?
3. What is another name for "GST paid on purchases"?
4. Kalyaniwalla Planners has a $5,000 note payable that is paid in $1,000 installments over five years. How would the portion that must be paid within the next year be reported on the balance sheet? And the balance?
5. Why is it important for a business to separate the current portion of long-term debt from the long-term debt?
6. At the beginning of the school term, what type of account is the tuition that your college or university collects from students? What type of account is the tuition at the end of the school term?
7. Why is a customer deposit a liability? Give an example.
8. Identify the employee benefit expenses an employer pays.
9. Under IFRS, what is the standard that must be met to report a contingent liability? Is it a higher or lower standard than under ASPE?

Textbook: Horngren's Accounting 11th Candian Edition