ACCT EXAM 4

Front

What are Liabilities?

Back

obligations a business has toward outside parties to pay cash, or provide goods or services.

Front

How do corporate balance sheets classify liabilities?

Back

as either current or long-term.

Front

Current liabilities are a category of accounts reported where?

Back

reported on the balance sheet, after assets and before stockholders (or shareholders) equity.

Front

Where does interest expense appear on financial statements?

Back

Interest expense is reported on the income statement as a non-operating expense.

Front

Where does interest payable appear on financial statements?

Back

Interest payable is reported on the balance sheet as a current liability.

Front

GROSS PAY =

Back

salary expense

Front

DEDUCTIONS FROM PAY =

Back

various payable

Front

NET PAY =

Back

salary payable

Front

What is warranty payable?

Back

An estimate of the obligation to perform warranty work on products sold.

Front

What are long-lived assets?

Back

Assets that are not current assets and are grouped into a subcategory; they will be used in the future or over a period longer than one year.