Match the following terms with the appropriate definition.
-Obligations that require the firm to pay cash or another current asset within one year
A)Accrued liabilities
B)Contingent liabilities
C)Current liabilities
D)Interest rate
E)Liabilities
F)Payroll taxes
G)Sales taxes
H)Warranty
I)Withholdings

Question

Quizplus · Accepted Answer

Current liabilities are obligations that require the firm to pay cash or another current asset within one year.

Answer: A
 Accrued liabilities are expenses that have been incurred but not yet paid, such as salaries or interest on loans.

Answer: E
 Liabilities refer to the financial obligations of a company, such as debt or accounts payable.

Answer: D
 Interest rate refers to the amount charged by a lender to a borrower for the use of money.

Answer: F
 Payroll taxes are taxes that are paid by employers on behalf of their employees, such as social security or Medicare taxes.

Answer: G
 Sales taxes are taxes that are levied on goods and services that are sold.

Answer: H
 Warranty refers to the guarantee that a product will meet certain standards or is free from defects.

Answer: I
 Withholdings refer to the amounts that are withheld from an employee's paycheck for taxes, such as federal or state income tax.

Match the Following Terms with the Appropriate Definition