[The following informamon applies to the quesnons displayed below.) In addition

ID: 2509358 • Letter: #

Question

[The following informamon applies to the quesnons displayed below.) In addition to trade accounts payable, many companies have other types of current liabilities. These include amounts withheld from employees' pay, sales and other taxes payable, deposits, and other accrued liabilities. Companies have many different types of current liabilities. These can include various taxes payable income tax, sales tax, payroll tax), accrued amounts for salary, vacation or other benefits, and estimates such as accrued utilities and warranty. To adhere to the concept of the matching principle, companies must estimate the amount of their other labilities. 1. value 0.60 points Read the example of each type of liability and, using the hint provided match it to the type of habity it The amount collected from the customer for a retail sale imposed by the state government FEE Amount estimated to be incured for utilities for unbilled period Amount of expense incurred on debt but not charged yet by bank An amount paid by a customer for a container to be later returned to the Amount estimated to be anticipated for warranty claim of sales already recorded Sales Tax Payable Customer Deposit Accrued Utilities Accrued Warranty The amount collected from the customer for a retail sale imposed by the state government Reset

Explanation / Answer

Type of Liability

Explanation

The amount collected from the customer for a retail sale imposed by the state government

Sales Tax Payable

The amount which has been collected to be repaid to the government but has not yet paid is known as Sales Tax Payable

Amount estimated to be incurred for utilities for unbilled period

Accrued Utility

Amount has become due for paying utilities expense but not yet paid is known as Accrued Utility

Amount of expense incurred on debt but not charged yet by bank

Accrued Interest

The amount of interest on loan taken by the bank has become due but not yet charged by the bank is known as accrued interest.

An Amount paid by a customer for a container to be later returned to the company

Customer Deposit

The amount which has been paid by a customer for the use of container in advance but later returned to the company is known as customer deposit.

Amount estimated to be anticipated for warranty claim of sales already recorded

Accrued Warranty

The amount recorded by company for warranty claim is known as Accrued Warranty