Intermediate Accounting 2

Question 1

How are liabilities classified?

Answer 1

Liabilities are classified as either current or long-term.

Question 2

What are 3 different types of current liabilities?

Answer 2

3 different types of current Liabilities are:

1. Payables from acquisition of goods and services
2. Collections received in advance of delivery of goods or services
3. Other liabilities that will be liquidated during the reporting cycle.

Question 3

What are 3 examples of payables from acquisition of goods and services?

Answer 3

3 examples of payables from acquisition of goods and services are:

1. Accounts payable
2. Wages payable
3. Taxes payable