Select the most appropriate item from the dropdown to match each of the following terms and phrases associated with current liabilities. 1. Interest expense is recorded in the period interest is incurred rather than in the period interest is paid. 2. Payment is reasonably possible and is reasonably estimable. Accrual accounting 3. Cash, current investments, and accounts receivable all divided by current liabilities. 4. Payment is probable and is reasonably estimable. Acid-test ratio 5. Gift cards. Commercial paper 6. Long-term debt maturing within one year. 7. Social Security and Medicare. Current portion of long-term debt Deferred revenue 8. Unsecured notes sold in minimum denominations of $25,000 with maturities up to 270 days. 9. Classifying liabilities as either current or long-term helps investors and creditors assess this. 10. Incurred on notes payable. Problem 8-1B Review current liability terms and concepts (LO8-1) Select the most appropriate item from the dropdown to match each of the following terms and phrases associated with current liabilities. 1. Interest expense recorded in the period interest is incurred rather than in the period interest is paid. 2. Payment is reasonably possible and is reasonably estimable. 3. Cash, current investments, and accounts receivable all divided by current liabilities. Disclosure of a contingent liability 4. Payment is probable and is reasonably estimable. FICA 5. Gift cards. Interest expense 6. Long-term debt maturing within one year. Recording a contingent liability 7. Social Security and Medicare. The riskiness of a business's obligations 8. Unsecured notes sold in minimum denominations of $25,000 with maturities up to 270 days. 9. Classifying liabilities as either current or long-term helps investors and creditors assess this. 10. Incurred on notes payable.