Match Each of the Following Current Liabilities with Its Meaning

question 143

Multiple Choice

Match each of the following current liabilities with its meaning.
-an accrued liability that represents the cost of borrowing

• 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:

Bond Principal

The face value of a bond, or the amount of money the bond issuer will pay back to the bondholder at maturity.

Serial Bonds

Bonds that are issued under the same contract but mature at different times, allowing the issuer to spread the repayment over several periods.

Principal Retirement

The act of paying off the original sum of money borrowed in a loan, excluding interest payments.

Unsecured Bond

A bond not backed by collateral, relying on the issuer's creditworthiness.