All of the Following Are Examples of Legal Liabilities Except

question 8

Multiple Choice

All of the following are examples of legal liabilities except

• A)notes payable
• B)sales tax payable
• C)sick pay payable (may be taken as time off)
• D)property taxes payable

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Definitions:

EAR

Effective Annual Rate, a measure of interest that takes into account the effects of compounding over a year.

Conversion Value

The financial worth of converting a convertible security, like a bond, into a set number of shares of the issuing company.

U.S. Treasury Note

A marketable U.S. government debt security with a fixed interest rate and a maturity between one and ten years.

Accrued Interest

The interest that has accumulated on a bond or other fixed-income security since the last interest payment was made.