Match Each of the Following Current Liabilities with Its Meaning

question 106

Multiple Choice

Match each of the following current liabilities with its meaning.
-amounts collected from customers in advance

• 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:

Endowment Effect

A psychological phenomenon in which people value an owned object higher than a similar object they do not own.

Resale

The act of selling a previously bought product, typically used, to another buyer.

Status Quo Bias

The tendency for people to prefer things to stay the same by doing nothing or sticking with a decision made previously.

Prospect Theory

A psychological theory that describes how people make decisions based on the potential value of losses and gains rather than the final outcome.