Exercise 10-1 Issues in Accounting for Liabilities

Indicate whether each of the following actions relates to (a) managing liquidity and cash flows, (b) recognition of liabilities, (c) valuation of liabilities, (d) classification of liabilities, or (e) disclosure of liabilities:

1. Providing information about financial instruments on the balance sheet	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 1
2. Measuring working capital	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 2
3. Setting a liability at the fair market value of goods to be delivered	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 3
4. Relating the payment date of a liability to the length of the operating cycle	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 4
5. Recording a liability in accordance with the accrual accounting	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 5
6. Estimating the amount of "cents-off" coupons that will be redeemed	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 6
7. Categorizing a liability as long-term debt	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 7
8. Comparing days' payable with last year	SelectManaging liquidity and cash flowsRecognition of liabilitiesValuation of liabilitiesClassification of liabilitiesDisclosure of liabilitiesItem 8