Quiz Ch 08 – T/F Understanding Contingent Liabilities
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
A possible duty linked to past occurrences’ future consequences is contingent liability.
A possible duty linked to past occurrences’ future consequences is contingent liability.
A contingent liability is a potential obligation that relies on the future outcome of past events.
Current liabilities are due within a year or operating cycle.
Long-term liabilities are mainly used for operating activities.
Short-term notes payable are notes payable with a maturity period of over one year.
Wage is the payment made to employees on a monthly or yearly basis.
Expenses like Warranties and Income Taxes require estimation.
The unearned Revenue account balance is zeroed when all advanced revenue is earned.
What are the terms used to describe the total wages employees earned for the payroll period and the amount of wages they take home?
Determine the total purchases during the year given inventory and COGS.
Your numbers will vary.