Match Each of the Following Current Liabilities with Its Meaning

question 17

Multiple Choice

Match each of the following current liabilities with its meaning.
-amounts owed for purchases on credit

• 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:

Exact Simple Interest

A method of calculating interest that uses a base of 365 days per year, ensuring accuracy based on actual calendar days.

365-Day Year

A 365-day year is a calendar method used in finance that assumes all years have 365 days for the calculation of interest rates.

Exact Simple Interest

Exact simple interest is a calculation method where interest accrues on a principal sum at a constant rate over a specific time period, using a 365-day year for calculations.

365-Day Year

A method used in finance that assumes a year consisting of 365 days for calculating interest, ignoring leap years.