Part III: Account for notes payable and accrued interest

__current liabilities____ are notes payable due within one year (or operating cycle if longer).

At the end of each year, a company reclassifies the portion of its long-term debt principal payments that must be paid in the next year from long-term debt to a current _current liability__.

Part IV: Account for accrued liabilities and unearned revenue

The major operating expense for a merchandising company is payroll. True or false?

false

What payroll liabilities does salary expense create?

Employee Income Tax Payable, Gross pay, FICA Tax Payable

Salary Payable, Employee Income Tax Payable, Union dues

Employee Income Tax Payable, FICA Tax Payable, Salary Payable

Healthcare, Salary Payable, FICA Tax Payable

Every expense accrual, including payroll, has the same effect: ____________________ and __________________________ because of the expense.

When is a company required to record warranty expense?

Part V: Account for contingent liabilities

A contingent liability is a potential liability that depends on the _________________ outcome of _________ events.

Part VI: Account for bonds payable and interest expense with straight-line amortization

______________________________ are groups of debt securities issued to multiple lenders, called bondholders.