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A law suit brought against a company for dumping its toxic waste into a river is an example of a liability. |
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An invoice that is due within 60 days is an example of a liability. |
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Twelve-thousand dollars of a five-year note payable that requires monthly payments of $1,000 (excluding interest) should be shown under the liability section of the balance sheet. |
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Payments of income taxes that are deferred until future years because of differences between GAAP and tax rules are called deferred income tax liabilities. |
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The face value of a note payable is $12,000, the amount actually borrowed was $11,200. The $800 difference is called on notes payable. |
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Obligation of an uncertain amount that can be reasonably estimated, such as property taxes, are called (contingent, estimated, known, actual, real) liabilities. |
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Obligations with little uncertainty are called (CONTINGENT, ESTIMATED, KNOWN, or REAL) liabilities. |
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A obligates the seller to pay for replacing or repairing the product (or service) when it fails to perform as expected. |
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The of long-term debt is the portion of long-term debt that is due within one year of the balance sheet date. |
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A - - note is a note that does not have a stated rate of interest; the interest is included in the face value of the note. It is also called a short-term note issued at a discount. |
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is the difference between the borrowed amount and the note’s face value. In essence, it is the interest on the borrowed money. |
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