ACCT 201 Principles of Financial Accounting
Practice Exam - Chapter 9
Reporting & Analyzing Current Liabilities
Dr. Fred Barbee

Solution to Short-Problem #1

Short Problem #1

Classify each of the following items as either:

  1. Estimated Liability
  2. Contingent Liability
  3. Current Liability that is neither a nor b.
  1. __(b)__ Lawsuit against the company.
  2. __(a)__ Warranty on products sold this year.
  3. __(c)__ Accounts payable.
  4. __(a)__ Income taxes payable.
  5. __(a)__ Vacation benefits.
  6. __(c)__ Accrued wages payable.
  7. __(b)__ Debt guarantees.
  8. __(a)__ Property taxes payable
  9. __(c)__ Payroll taxes payable.
  10. __(c)__ Unearned revenues.