Match Each of the Following Current Liabilities with Its Meaning

question 71

Multiple Choice

Match each of the following current liabilities with its meaning.
-amounts collected from customers that must be passed along to the state

• A)account payable
• B)note payable
• C)wages payable
• D)interest payable
• E)sales taxes payable
• F)CPP payable
• G)employment taxes payable
• H)unearned sales revenues
• I)estimated warranty liability

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Definitions:

Option Contract

A financial derivative that provides the buyer the right, but not the obligation, to buy (call) or sell (put) an underlying asset at a predetermined price within a specific time period.

Hedge Risk

The strategy of minimizing potential financial losses or gains by using financial instruments or other measures.

Option Contract

A financial instrument allowing the owner the choice, but not the requirement, to purchase or sell a certain asset at an agreed price during a designated period.

Speculate

The action of investing in financial assets with high risk in the hope of achieving high returns.