All of the following are reported as current liabilities except: a. interest payable. b. bonds payable due in 18 months. c. salaries payable. d. sales tax payable.

Question

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Answer 1

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

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Students have asked these similar questions

All of the following are reported as current liabilities except:a. interest payable.b. bonds payable due in 18 months.c. salaries payable.d. sales tax payable.

Six events relating to liabilities follow: a. Paid the liability for interest payable accrued at the end of the last accounting period. b. Made the current monthly payment on a 12-month installment note payable, including interest and a partial repayment of principal. c. Issued bonds payable at 98 on March 1 of the current year. The bonds pay interest March 1 and September 1. d. On September 1 of the current year, recorded interest expense and made semiannual interest payment on bonds referred to in part c. e. Recorded necessary adjusting entry on December 31 of the current year for bonds referred to in part c. f. Recorded estimated six-month warranty expense on December 31 of the current year. Indicate the effects of each transaction or adjusting entry on the financial measurements in the five column headings listed. Use the code letters I for increase, D for decrease, and NE for no effect. Transaction Current Liabilies Long-Term Liabilties Net Income Net Cash Flow from…

Which of the following is a current liability? Borrowings due in 18 months Share capital Trade(Accounts) payable in 12 months Retained earnings

Answer 2

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

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Answer 3

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

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Answer 4

Textbook Question

Chapter 8, Problem 1QC

All of the following are reported as current liabilities except:

a. interest payable.

b. bonds payable due in 18 months.

c. salaries payable.

d. sales tax payable.

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

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Answer 5

Textbook Question

Answer 6

Textbook Question

Answer 7

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 8

Expert Solution & Answer

To determine

To identify: The correct option related to current liabilities.

Answer to Problem 1QC

Option (b)

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

To determine

To identify: The correct option related to current liabilities.

Answer 12

Answer to Problem 1QC

Option (b)

Answer 13

Explanation of Solution

Current liabilities: Current liability is a kind of liability or the obligation of the business towards the creditors, in which the business is required to pay the creditors, within a period of one year or one operating cycle of the business, whichever is longer.

Examples of current liabilities: Accounts payable, Salaries and Wages payable, Interest payable, Income Tax payable.

Explanation for correct answer: Bonds payable that have a maturity period of more than 12 months is not reported as current liability; it is reported under long-term liability on the company’s balance sheet. Hence Option (b) is correct.

Explanation for incorrect answers:

Option (a) is incorrect because interest payable is the obligation for the company that the company needs to pay to the banker within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (c) is incorrect because salaries payable is the obligation for the company that the company needs to pay to the employees within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.
Option (d) is incorrect because sales tax payable is the obligation for the company that the company needs to pay to the government within 12 months. Hence, it is reported under the current liabilities on the company’s balance sheet.

Answer 14

Conclusion

Hence, the correct answer option is (b).

Answer 15

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All of the following are reported as current liabilities except: a. interest payable. b. bonds payable due in 18 months. c. salaries payable. d. sales tax payable.

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Answer to Problem 1QC

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