Match each of the following current liabilities with its meaning.
-Amounts owed for purchases on credit.
A)Account payable
B)Note payable
C)Wages payable
D)Interest payable
E)Sales taxes payable
F)FICA taxes payable
G)Unemployment taxes payable
H)Unearned sales revenues
I)Estimated warranty liability

Question

Quizplus · Accepted Answer

Amounts owed for purchases on credit are called accounts payable.

Answer: E
 Sales taxes payable are the amounts collected from customers but not yet remitted to the government.

Answer: F and G
 FICA taxes payable and unemployment taxes payable are payroll taxes owed by the employer to the government.

Answer: H
 Unearned sales revenues are advance payments received from customers for goods or services that have not yet been delivered.

Note: Note payable is a current or long-term liability that arises from borrowing money and signing a promissory note, wages payable is the amount owed by a company to its employees for their outstanding wages or salaries, and estimated warranty liability is an estimated amount that a company owes for the warranty on its products.

Match Each of the Following Current Liabilities with Its Meaning