1. Is a commitment for future goods and services entered in the accounting records as a liability? Explain.
2. Briefly discuss the correct treatment of vacation pay in the accounting records.
3. What does the Discount on Notes Payable account represent?
4. Does discount amortization increase or decrease a company's reported interest expense for the year?
5. What guidelines must be met for a contingent liability to be recorded in the accounts?
6. Why is a warranty considered a contingent liability?
7. Which payroll taxes are incurred by an employer? How are these taxes treated in the accounting records?
8. Briefly explain the disadvantages of the corporate form of organization.
9. Discuss the meaning of legal capital.
10. Do changes in a stock's market value influence a company's financial position? Briefly discuss.