1. How is interest computed on an interest-bearing short-term note?
2. When would debt that must be repaid within the next year be classified as long- term instead of current?
3. What do we mean by accrued liabilities? Provide some common examples.
4. Provide examples of payroll taxes that are paid by the employee through reduction of their gross pay. Provide some examples of payroll taxes that are paid by the employer.
5. Why do unearned revenues and customers' deposits qualify as liabilities?
6. What are contingent liabilities? Provide an example.