Debts that are due to be paid within one year or within the company's operating cycle are called: a.deferred liabilities. b.liquid liabilities. c.long-term liabilities. d.current liabilities. e.quick liabilities.
Q: What is current Liability Select one: O a. A debt that the company expects to pay After one year O…
A: SOLUTION- CURRENT LIABILITY- CURRENT LIABILITIES ARE THE COMPANY SHORT TERM FINANCIAL OBLIGATIONS…
Q: In Orchard Company’s December 31, 2022 statement of financial position, a note receivable was…
A: Current assets means those assets which will be converted in to cash in near future generally one…
Q: Accounts payable, in general, is classified as current when and only: * When it is expected to be…
A: Current liabilities are those obligations which are due for repayment within the operating cycle or…
Q: Debt due within one year is considered: A . current.
A: Debt due within one year is considered
Q: Accounts payable are solely used for purchases of inventories from suppliers. All purchases are on…
A: Cash Flow Statement Cash Flow statement which can be prepared by using both Direct method and…
Q: S11-1 Determining current versus long-term liabilities Rios Raft Company had the following…
A: Current liability = The liabilities which need to be paid within one year are current liabilities…
Q: For the year ended December 31, 201A Inventories Trade and associated company Short term investment…
A: Current ratio shows the liquidity of the firm and show the position of working capital of the…
Q: Which of the items are normally classified as current liabilities for a company that has a…
A: Current Liabilities are those liabilities which are to paid in within a year time or within the…
Q: How much is the interest expense to be reported by the company for the year ended December 31, 2022?…
A: Interest expense on note payable is the amount of interest accrued on note payable calculated at the…
Q: An annual report of Sprint Corporation contained a rather lengthy narrative entitled “Review of…
A: Current liabilities: The obligations owed by a company to creditors and suppliers and are to be paid…
Q: Long-term liabilities are financial obligations of a company that are due more than one year in the…
A: Long term liabilities are those financial obligations of the company that are due for more than one…
Q: f a long-term debt is paid in installments, the business will report the current portion of the note…
A: The current portion of debt amout reported as current liability and remaining principal amount is…
Q: Which of the following shows how the year-end adjustment to recognize supplies expense will affect a…
A: Supplies Expense :— It is an expense account. It means purchase of inventory. Year end adjustment…
Q: A short-term note payable: O Is a written promise to pay a specified amount on a definite future…
A: Short-term note payable is not a contingent and estimated liability because it has a definite amount…
Q: Debts listed as current liabilities are those that a. are due to be paid in more than one year Ob.…
A: The debt can be distinguished as current or non current liability.
Q: months after the given mat
A: Given as,
Q: Which obligation are classified as current even if they are due to be settled after more than twelve…
A: Some current liabilities, such as trade payables and staff costs, are included in the entity's…
Q: A liability is classified as a current liability if it is expected to be settled within the next…
A: A liability shall be classified as current when it satisfies any of the following criteria:(a) it is…
Q: If a company has a long-term loan that has only two yearsremaining until it matures, how is it…
A:
Q: A written Promissory Note, issued by a creditworthy corporation or a municipality and its maturity…
A: Commercial paper is a short-term debt instrument commonly issued by companies to finance their short…
Q: notes should be classified on the balance sheet of Lance Company
A: a) Current Liabilities: These are the short term liabilities which are due within a period of one…
Q: Phoebe Corporation signed a six-month note payable on October 23, 2018. What accountsrelating to the…
A: When the notes payable is signed in the middle of the financial year, and interest is included, the…
Q: During the first year of operations, a company granted warranties on its products at an estimated…
A: The warranty expenses refer to the amount of expenses which are incurred or expected to be incurred…
Q: Which of the items are normally classified as current liabilities for a company that has a…
A: Current liabilites are those Liabiliites which are to paid in within next year or within the…
Q: items appear on the balance sheet of a company with a one-year operating cycle. Identifythe proper…
A: Current liability: Current liability is a debt that the companies need to pay the debts from…
Q: The most important information needed to determine if companies can pay their current obligations is…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: substantive procedures the auditor should perform
A: Substantive audit procedures are tests performed by auditor to ensure that items and amounts…
Q: When companies have debt that is not due to be paid for several years but that is callable (due on…
A:
Q: A company has a $15,000 loan payable that is due over five years. $3,000 of the loan must be paid in…
A: Current liabilities include all those liabilities which are payable within a time period of twelve…
Q: At the balance sheet date, a business owes a mortgage note payable of $660,000, the terms of which…
A: Annual payment = Monthly payment * Number of months Annual payment = $2,200*12 Annual payment =…
Q: Jamison Company has the following obligations at December 31: For each obligation, indicate whether…
A: A liability is classified as a current liability if it is expected to be paid within 12 months from…
Q: items appear on the balance sheet of a company with a one-year operating cycle. Identifythe proper…
A:
Q: An entity has a loan due for repayment in six months' time but the entity has the option to…
A: REFINANCE REFERS TO THE PROCESS OF REVISING AND REPLACING THE TERMS OF AN EXISTING CREDIT AGREEMENT…
Q: Rios Raft Company had the following liabilities. Determine whether each liability would be…
A: Current liability: Liabilities which have to be paid with in next one year from the date of the…
Q: Which of the following would appear on the balance sheet as a current liability? Group of answer…
A: Current liabilities are short term financial obligation which are due in normal operating cycle.
Q: Match (by letter) the correct reporting method for each of the items listed below. Reporting Method…
A:
Q: A company has the following liabilities at year-end: Mortgage note payable; $16,000 due within 12…
A: Current liability includes all those liabilities which are payable within one year it includes…
Q: Short-term liabilities are those liabilities that a. will be paid in less than one year b. are due…
A: Liabilities is the future sacrifices on the basis of past transactions and events. Borrowing of a…
Q: A company is insolvent when Select one: a.it is in default on one-third or more of its outstanding…
A: Insolvent company is a where the company is unable to discharge its debts within the due dates…
Q: Under what conditions is the current portion of long-term debt reported as current debt? to. If it…
A: Working capital is the excess of current assets over current liabilities.
Q: From the following list indicate which of the liabilities that would be classified as current. a.…
A: As per the relevant IFRS, while preparing the Statement of Financial Position, it is compulsory to…
Q: When a company prepares its annual financial reports, it must first prepare the Question 6…
A: Annual financial statements are prepared in the following order: 1. Income statement - Statement of…
Q: collection period of MS Manufacturers is 45 days. The creditors payment period is 30 days. The cash…
A: Given Cash conversion cycle = 73 days Debtor collection period = 45 days Creditors repayment period…
Q: Which of the items are normally classified as current liabilities for a company that has a…
A: The entity needs to classify the components of the balance sheet into the current and non-current…
Q: Statement I- A long-term debt that is due to be settled within twelve months after the end of the…
A: Following is the answer to the given question
Q: Current liabilities can't exceed the amount incurred in one operating cycle. Liquidation of current…
A: The operational cycle is the time it takes for a company to acquire products, sell them, and…
Q: Accounts payable, in general, is classified as current when and only: O When it is expected to be…
A: When the business has an operating cycle different than one year, assets and liabilities are…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities. True FalseAccounting for liabilities involves recording and managing obligations a company owes to external parties. Liabilities are classified based on their nature and timing of settlement. Common types include: Current Liabilities: Debts or obligations expected to be settled within one year or the operating cycle, whichever is longer. Examples include accounts payable, accrued expenses, and short-term loans. Long-Term Liabilities: Obligations not due within the next operating cycle or one year. Examples include long-term loans, bonds payable, and lease obligations. Contingent Liabilities: Potential obligations that depend on a future event, such as lawsuits or warranties. They are disclosed in the footnotes of financial statements unless the likelihood of payment is remote. Deferred Revenue: Payments received in advance for goods or services to be provided in the future. They are recorded as liabilities until the revenue recognition criteria are met. Accrued Liabilities: Expenses…Current liabilities a. May include contingent liabilities.b. Include obligations payable within one year or one operating cycle, whichever is shorter.c. Can be satisfied only with the payment of cash.d. Are preferred by most companies over long-term liabilities.
- Most companies pay current liabilities Select one: a. out of current assets. b. by issuing interest-bearing notes payable. C. by issuing stock. d. by creating long-term liabilities.Current liabilities are obligations where liquidation is reasonably expected to require the use of existing current assets or the creation of other current liabilities within: A. one year. B. one year or one operating cycle, whichever is longer. C. one year or one operating cycle, whichever is shorter. D. an operating cylce.Calculate: a. Average Receivable days/ Debtors collection periodb. Average Payable days/ Creditors collection period
- Where is debt callable by the creditor reported on the debtor's financial statements? a) Long term liability b) Current liability if the creditor intends to call the debt within the year , otherwise a long term liability. c) Current liability if it is probable that creditor will call the debt within the year, otherwise a long term liability. d) current liabilityWhich of the following liabilities is created when a company receives cash for services to be provided in the future? A. Unearned Revenue B. Estimated Warranty Payable C. Accrued Liability D. Accounts PayableThe kind of debts which are needed to be repaid in a short term is known as? A. Fixed Liabilities B. Current Liabilities C. Depreciating Assets D. Intangible Assets
- choose the right answer The debts which are to be repaid within a short period (a year or less) are referred to as, Contingent liabilities All the above Fixed liabilities Current Liabilities O choose the right answer Gross profit is Sales - Purchases O Cost of goods sold + Opening stock Sales - cost of goods sold Net profit - expensesDetermine the correct classification of the following liabilities:(1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.(4) Current portion of long-term debt. All are long term liabilities. All are current liabilities. Only number 1 is noncurrent. Only numbers 1 and 3 are noncurrent.Determine the correct classification of the following liabilities:(1) Liability with a due date which can be accelerated to within one year of the statement of financial position date; a reasonable probability exists that the due date will be accelerated.(2) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is remote.(3) Liability due on demand by creditor, probability of the creditor calling the in the liability within one year of the statement of financial position date is reasonable but not likely.(4) Current portion of long-term debt. Group of answer choices Only number 1 is noncurrent. Only numbers 1 and 3 are noncurrent. All are current liabilities. All are long term liabilities.