Current Liabilities

On Your Test

Introduction to Accounting

On Your Test

You will be expected to know the following for multiple-choice concept questions.    Almost all questions will relate to these things:

The definition of a liability and current and non current

The difference in accounts payable and other current liabilities

How sales tax is computed and paid to governments

How unearned revenue occurs

What is a short term notes payable and how interest expense is computed

The definition of the different payroll liabilities and how they are computed

How a warranty liability is estimated

When warranty liabilities and claims are recorded

What is a contingent liability

How a contingent liability is reported – classifications of probable, reasonably possible and remote

You will be asked to do the following on problems and multiple-choice problems that require calculations.   

Compute and record sales tax 

Compute and record warranty liabilities

Compute and record payment to employees

Compute and record payment for payroll tax expense

Determine if an amount must be reported and record the related contingent liability