Refer to the Following List of Liability Balances at December

question 131

Multiple Choice

Refer to the following list of liability balances at December 31,2017. $$\begin{array} { | l | r | } \hline \text { Accounts Payable } & \$ 22,000 \\\hline \text { Employee Health Insurance Payable } & 1,450 \\\hline \text { Employee Income Tax Payable } & 400 \\\hline \text { Estimated Warranty Payable } & 1,200 \\\hline \text { Long-Term Notes Payable (Due 2021) } & 37,000 \\\hline \text { FICA-OASDI Taxes Payable } & 1,560 \\\hline \text { Sales Tax Payable } & 1,270 \\\hline \text { Mortgage Payable (Due 2022) } & 7,000 \\\hline \text { Bonds Payable (Due 2023) } & 53,000 \\\hline \text { Current Portion of Long-Term Notes Payable } & 7,500 \\\hline\end{array}$$ What is the total amount of current liabilities?

• A)$35,380
• B)$27,880
• C)$27,480
• D)$26,280

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Definitions:

Working Capital

The variance between a firm's immediate assets and its short-term obligations.

Accumulated Depreciation

The total depreciation of an asset over its life up to a specific point in time, reflecting how much of its value has been used up.

Accounts Payable

Accounts payable represent a company's obligation to pay off a short-term debt to its creditors or suppliers.

Accounts Receivable

The funds that customers owe to a business for products or services already provided but not yet compensated for.