Sample Midterm Exam 2 SOLUTIONS

List a list b g 1 long term debt maturing within one

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List A List B g 1. Long-term debt maturing within one year. a. Interest expense e 2. Classifying liabilities as either current or long-term helps investors and creditors assess this. b. Accrual accounting f 3. Cash, short-term investments, and accounts receivable all divided by current liabilities. c. Recording a contingent liability a 4. Incurred on a notes payable. d. Deferred revenues b 5. Interest expense is recorded in the period interest is incurred rather than in the period interest is paid. e . The riskiness of a business’s obligations c 6. Loss is probable and amount is reasonably estimable. f. Acid-test ratio d 7. Gift cards. g. Current portion of long-term debt
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