which one of the following is not a typical current liability? course hero

Which of the following is an example of current liability?

Both the note payable and the interest payable are current liabilities. Sales taxes are an expense to the retailer. Federal unemployment taxes are paid by both the employer and the employee. Unearned revenue is a type of current liability.

Is a note payable a current liability?

-Both the note payable and the interest payable are current liabilities. A current liability is a debt the company reasonably expects to pay (1) from existing current assets or through the creation of other current liabilities, and (2) within the next year or the operating cycle, whichever is longer.

What is the time period for classifying a liability as current?

The time period for classifying a liability as current is one year or the operating cycle, whichever is. Liabilities are classified as current if they will be paid with current assets within one year or the current operating cycle, whichever is longer.

How is debt classified as a current liability?

To be classified as a current liability, how or when must a debt be expected to be paid? Liabilities are classified as current if they will be paid with current assets within one year or the current operating cycle, whichever is longer.

What happens if the contractual rate of interest is lower than the market rate of interest?

If the contractual rate of interest is lower than the market rate of interest, bonds will sell at a premium.

Is interest payable current liability?

Both the note payable and the interest payable are current liabilities.

What is a current liability?

A current liability is a debt the company reasonably expects to pay (1) from existing current assets or through the creation of other current liabilities, and (2) within the next year or the operating cycle, whichever is longer. Prepaid rent is a current asset. A corporation issued a $50,000, 9%, 4-month note on July 1.

How long does it take to classify a liability as current?

The time period for classifying a liability as current is one year or the operating cycle, whichever is. Liabilities are classified as current if they will be paid with current assets within one year or the current operating cycle , whichever is longer.

When are liabilities considered current?

Liabilities are classified as current if they will be paid with current assets within one year or the current operating cycle, whichever is longer.

Why is the total cost of borrowing less than the bond interest paid?

The sale of bonds above face value causes the total cost of borrowing to be less than the bond interest paid because the borrower receives the entire premium when the bonds are issued, and pays only periodic interest payments and the face value at the maturity date.