Match each of the following terms pertaining to liabilities to their definitions.
-The portion of a long-term liability that will be paid within one year of the balance sheet date.
A)Current liability
B)Accounts payable
C)Notes payable
D)Discount on notes payable
E)Current maturities of long-term liabilities
F)Accrued liabilities
G)Contingent liability
H)Estimated liability

Question

Quizplus · Accepted Answer

Current maturities of long-term liabilities refers to the portion of a long-term liability that must be paid within one year of the balance sheet date.

Answer: A
 Current liability refers to any debt that needs to be repaid within one year of the balance sheet date.

Answer: C
 Notes payable refers to any formal written promise to pay a specified amount of money that is due at a specific future date.

Answer: D
 Discount on notes payable refers to the difference between the face value of a note and the amount received when it is issued.

Answer: F
 Accrued liabilities refer to any expenses that have been incurred but not yet paid or recorded, such as unpaid wages, taxes, or interest.

Answer: G
 Contingent liability refers to a potential obligation that may arise depending on the outcome of a future event, such as a lawsuit, environmental cleanup, or product warranty claim.

Answer: H
 Estimated liability refers to a debt or obligation for which the exact amount is uncertain, and must be estimated using available information, such as a provision for employees' retirement benefits.

Match Each of the Following Terms Pertaining to Liabilities to Their