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.

The following items are found in the financial statements. a. Discount on bonds payable. b. Interest expense (credit balance). c. Unamortized bond issue costs. d. Gain on repurchase of debt. e. Mortgage payable (payable in equal amounts over next 3 years). f. Debenture bonds payable (maturing in 5 years). g. Notes payable (due in 4 years). h. Premium on bonds payable. i. Bonds payable (due in 3 years). Instructions Indicate how each of these items should be classified in the financial statements.

Which of the following is a current liability? Bond payable due in two years for which there is an adequate sinking fund. Bond payable due in three years expected to be refinanced. Bond payable due in eleven months for which there is an appropriation of retained earnings. Bond payable due in eight months and refinanced on a long-term basis at the end of reporting period.

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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