Match each of the following current liabilities with its meaning.
-A contractual agreement to borrow and repay money.
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

A note payable is a contractual agreement to borrow and repay money.

Note: The other current liabilities are:
A) Account payable - an amount owed to a supplier for goods or services purchased on credit.
C) Wages payable - amounts owed to employees for work performed but not yet paid.
D) Interest payable - interest due on borrowed funds.
E) Sales taxes payable - taxes owed to the government on sales made.
F) FICA taxes payable - taxes owed to the government on employee wages for Social Security and Medicare.
G) Unemployment taxes payable - taxes owed to the government for unemployment insurance.
H) Unearned sales revenues - payments received in advance from customers for goods or services not yet provided.
I) Estimated warranty liability - estimated amount of future costs to be incurred for fulfilling warranty obligations on products sold.

Match Each of the Following Current Liabilities with Its Meaning