Concept – Current Liabilities Recorded at…
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
What is the basis of current liabilities for it to be recorded?
What is the basis of current liabilities for it to be recorded?
All are correct statements about deferred revenue EXCEPT for:
When is a long-term liability recognized as a current liability?
All fall under current liability EXCEPT:
Not all liabilities are contractual and may not be settled with cash.
An arrangement with a bank or group of banks for long-term funding is known as a line of credit.
Funds deducted from employees’ paychecks for payroll purposes may represent liabilities that need to be paid to third parties.
When a product or service is provided, a customer advance liability is fulfilled.
Gift card revenue is recognized immediately upon sale, instead of being deferred.
If a creditor can demand repayment of long-term debt within the next year, the debt should be classified as a current liability only if it is anticipated to be called.