Reference no: EM132704346

Problem 1: Which of the following would most likely be classified as a current liability?

1. Bonds payable.
2. Mortgage payable.
3. Wages payable
4. Two-year notes payable

Problem 2: The interest deducted in advance from the face amount of a note is called
1. the proceeds
2. the face value
3. a discount
4. the maturity value

Problem 3: In order for a contingent liability to be recorded in the general ledger it must meet which two criteria
1. It is probable and material
2. It is probable and cannot be estimated
3. It is probable and can be estimated
4. It is possible and can be estimated

Problem 4: Which of the following is not an example of a contingent liability.
1. Accounts payable
2. Product warranties
3. Potential litigation losses
4. Guarantee of another entities' debt
5. Environmental liabilities