1. Define liability. Differentiate between a current liability and a long-term liability. 2. What financial statement is the primary source of information about the liabilities of a company? 3. What does the accounts payable turnover ratio tell you about a company? How is the ratio computed? 4. Define accrued liability. What is an example of an accrued liability? 5. Define note payable. When must a company reclassify a long-term note payable as a current liability? 1. Define liability. Differentiate between a current liability and a long-term liability. 2. What financial statement is the primary source of information about the liabilities of a company? 3. What does the accounts payable turnover ratio tell you about a company? How is the ratio computed? 4. Define accrued liability. What is an example of an accrued liability? 5. Define note payable. When must a company reclassify a long-term note payable as a current liability