CA 2 Ch 11 Payroll Flashcard

Front

What is the accounting treatment for contingent liabilities?

Back

They are disclosed in the notes to the financial statements.

Front

Which of the following is included in the quick ratio calculation? Inventory, Prepaid expenses, Cash and cash equivalents, Long-term investments

Back

Cash and cash equivalents

Front

How are contingent liabilities typically reported?

Back

As a footnote in the financial statements

Front

What is the role of a debtor in a loan?

Back

To receive the loan

Front

What is the relationship between current liabilities and current assets?

Back

Current liabilities are paid out of current assets

Front

What are periodic payments for long-term liabilities called?

Back

Installments

Front

Where is the interest expense reported?

Back

Other Expense section of the income statement

Front

Discount on Notes Payable is a liability account.

Back

False

Front

Supplies purchased on account that will be paid for at a later date is a liability.

Back

True

Front

____ are debts of the business that must be paid within the next accounting period.

Back

current liabilities