Match each of the following terms pertaining to liabilities to their definitions.
-A contra-liability account that represents interest deducted from a loan or note in advance.
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

Discount on notes payable is a contra-liability account that represents the interest deducted in advance from the face value of a note payable. This discount effectively reduces the total amount of liability recorded on the balance sheet until it is amortized over the life of the note.

Match Each of the Following Terms Pertaining to Liabilities to Their