Question

Fill in the blank with the correct answer.

1. Amounts owed to suppliers for goods and services that have been provided to the entity on credit are called ______________________________________.
2. A current liability that represents cash collected in advance of earning the related revenue is called ____________________________________________.
3. The portion of long-term debt that is to be paid within one year of the balance sheet date is reclassified from the non-current liability section of the balance sheet and called ______________________________________________________.
4. Total wages earned by employees for a payroll period including bonuses and overtime are called _______________________. From this amount, deductions and withholdings are subtracted to arrive at the _____________________________, which is the amount recorded on the company’s balance sheet as a wages payable.
5. In order for a contingent liability to be recorded in a company’s balance sheet, it must be bot _________________________ and ____________________________.
6. When a bond’s stated rate is higher than the market rate, the bond is issued at a ______________________________. When a bond’s stated rate is lower than the market rate, the bond is issued at a ______________________________.
7. The _________________________ portion of a payment on long-term debt is booked as a reduction of the debt on the balance sheet, while the ____________________ portion of a payment on long-term debt is booked as an expense on the income statement.
8. The date a bond is issued is called the ______________________________, while the date the face value of the bond is repaid to the investor is called the ______________________________.

Answer 1

Amounts owed to suppliers for goods and services that have been provided to the entity on credit are called Accounts Payable

A current liability that represents cash collected in advance of earning the related revenue is called Unearned Revenue

The portion of long-term debt that is to be paid within one year of the balance sheet date is reclassified from the non-current liability section of the balance sheet and called Current Maturity of long-term debt

Total wages earned by employees for a payroll period including bonuses and overtime are called Gross Pay. From this amount, deductions and withholdings are subtracted to arrive at the Net Pay, which is the amount recorded on the company’s balance sheet as a wages payable.

In order for a contingent liability to be recorded in a company’s balance sheet, it must be both probable and amount can be estimated

When a bond’s stated rate is higher than the market rate, the bond is issued at a Premium. When a bond’s stated rate is lower than the market rate, the bond is issued at a Discount.

The Principal portion of a payment on long-term debt is booked as a reduction of the debt on the balance sheet, while the Interest portion of a payment on long-term debt is booked as an expense on the income statement.

The date a bond is issued is called the issue date, while the date the face value of the bond is repaid to the investor is called the maturity date.