Question

Indicate the way each of the items listed below should be reported in a balance sheet at December 31, 2021.

asset

current liability

disclosure note only

long term liability

not reported

	Reporting method
commercial paper
noncommitted line of credit
customer advances
estimated quality assurance warranty cost
accounts payable
Long Term bonds that will be callable by the creditor in the upcoming year unless an existing violation is not corrected
Note due March 3 2022
Interest accrued on note December 31, 2021
Short-term bank loan to be paid with proceeds of sale of common stock
a determinable gain that is contingent on a future event that appears extremely likely to occur in three months
unasserted assessment of taxes owed on the prior year income with a a resonable possibility of being asserted in which case there would probably be a loss in 6 months
unasserted assessment of taxes owed on the prior year income with a a resonable possibility of being asserted in which case there would probably be a loss in 13 months
a determinable loss from a past event that is contingent on a future event that appears extremely likely to occur in three months
Note payable due April 4 2024
Long-term bonds callable by the creditor in the upcoming yeart that are not expected to be called

Answer 1

Current liabilities are those liabilities whose obligations are to be met within next 12 months.

Long term liabilities are liabilities whose obligations are to be met beyond 12 months.

Liabilities whose amount cannot be ascertained and the probability is there for payment within 12 months is to be disclosed through notes only. Such liabilities beyond 12 months are not to be reported

commercial paper	Current Liability
noncommitted line of credit	Disclosure note only
customer advances	current liability
estimated quality assurance warranty cost	Current Liability
accounts payable	Current Liability
Long Term bonds that will be callable by the creditor in the upcoming year unless an existing violation is not corrected	Current Liability
Note due March 3 2022	Current Liability
Interest accrued on note December 31, 2021	Current Liability
Short-term bank loan to be paid with proceeds of sale of common stock	long term liability
a determinable gain that is contingent on a future event that appears extremely likely to occur in three months	Disclosure note only
unasserted assessment of taxes owed on the prior year income with a a resonable possibility of being asserted in which case there would probably be a loss in 6 months	Current Liability
unasserted assessment of taxes owed on the prior year income with a a resonable possibility of being asserted in which case there would probably be a loss in 13 months	Not to be reported
a determinable loss from a past event that is contingent on a future event that appears extremely likely to occur in three months	Current Liability
Note payable due April 4 2024	long term liability
Long-term bonds callable by the creditor in the upcoming year that are not expected to be called	Current Liability