Match the Following Items with the Appropriate Designation (Estimated Liability

question 48

Multiple Choice

Match the following items with the appropriate designation (Estimated liability, Contingent liability, or Known liability) .
-Sales taxes payable

• A)Contingent liability
• B)Estimated liability
• C)Known liability

Identify the limitations and challenges associated with internal controls.

Explain the process and importance of bank reconciliations.

Comprehend the roles and responsibilities of employees in upholding internal controls.

Describe methods and practices for safeguarding company assets.

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Definitions:

Discount

A reduction applied to the normal cost of goods or services, or in finance, the process of determining the present value of future cash flows by applying a discount rate.

Compound Interest

Interest that accrues on the principal amount as well as on the accrued interest from earlier periods, for either a deposit or a loan.

Simple Interest Rate

The percentage of interest paid on the original principal amount of a loan or investment, not compounding over time.

Compound Interest

Interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.