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Classify Each of the Following Items as Either

Question 210

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Classify each of the following items as either:

Premises:
60-day promissory note
Payment of a 4-year term loan due this year
Salaries payable
Debt guarantees
FICA taxes payable
Income taxes payable
Payment of a 30-year term loan due this year
Payment of a 30-year term loan due next year. (The company's operating cycle is 2 months.)
Warranty work completed this year
Accounts payable
Responses:
Current liability
Long-term liability
Not a liability

Correct Answer:

60-day promissory note
Payment of a 4-year term loan due this year
Salaries payable
Debt guarantees
FICA taxes payable
Income taxes payable
Payment of a 30-year term loan due this year
Payment of a 30-year term loan due next year. (The company's operating cycle is 2 months.)
Warranty work completed this year
Accounts payable
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