Classify Each of the Following Items as Either

question 79

Essay

Classify each of the following items as either:
1.Long-term liability.
2.Current liability.
3.Not a liability
30-day promissory note
Car payments on a 4-year loan due this year
Salaries payable
Bonds payable
Employee deductions
Income taxes payable
Mortgage payments on a 30-year loan due this year
Mortgage payments on a 30-year loan due next year
Warranty work completed this year
Accounts payable

---

Definitions:

Money Market Accounts

Savings accounts that typically offer higher interest rates, with the balance usually accessible through checks or electronic transfers.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts payable and inventories.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to insignificant risk of changes in value.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.