Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following items appear on the balance sheet of

The following items appear on the balance sheet of a company with a one-year operating...

80.2K

Verified Solution

Question

Accounting

image

The following items appear on the balance sheet of a company with a one-year operating cycle. Identify the proper classification of each item as follows: C if it is a current liability, L if it is a long-term liability, or N if it is not a liability. 1. Accounts payable (due in 30 days) 2. Bonus payable (to be paid in 60 days) 3. Patents (to expire after 5 years) 4. Interest payable (due in 90 days) 5. Notes payable (due in 120 days). 6. Sales taxes payable. 7. FICA-Medicare Taxes Payable Item 8. Unearned revenues (to be earned over next 3 months) 9. Salaries payable 10. Pension liability (to be paid to employees retiring in 2 to 5 years) Classification

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students