Classify Each of the Following Items as Either

question 45

Essay

Classify each of the following items as either:
A. Current liability
B. Long-term liability
C. Not a liability
1. 60-day promissory note
2. Payment of a 4-year term loan due this year
3. Salaries payable
4. Debt guarantees
5. FICA taxes payable
6. Income taxes payable
7. Payment of a 30-year term loan due this year
8. Payment of a 30-year term loan due next year. (The company's operating cycle is 2 months.)
9. Warranty work completed this year
10. Accounts payable

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Definitions:

Import

The purchase of goods or services produced in a foreign country for use in the domestic market.

Raspberries

A small, red, edible fruit from the genus Rubus, known for its sweet taste and rich vitamin content, often used in desserts and jams.

Exchange Rate

The value of one currency expressed in terms of another currency.

American Goods

Products that are manufactured or produced in the United States. They often reflect the quality, labor standards, and manufacturing practices of the U.S.