ACC 304 help A Guide to career/Snaptutorial ACC 304 help A Guide to career/Snaptutorial | Seite 140

3. Magazine subscriptions and airline ticket sales both result in
unearned revenues.
4. Discount on Notes Payable is a contra account to Notes Payable
on the balance sheet.
5. All long-term debt maturing within the next year must be
classified as a current liability on the balance sheet.
6. A short-term obligation can be excluded from current liabilities
if the company intends to refinance it on a long-term basis.
7. Many companies do not segregate the sales tax collected and
the amount of the sale at the time of the sale.
8. A company must accrue a liability for sick pay that accumulates
but does not vest.
9. Companies report the amount of social security taxes withheld
from employees as well as the companies’ matching portion as
current liabilities until they are remitted.
10. Accumulated rights exist when an employer has an obligation to
make payment to an employee even after terminating his employment.
11. Companies should recognize the expense and related liability
for compensated absences in the year earned by employees.
12. Companies should accrue an estimated loss from a loss
contingency if information available prior to the issuance of financial
statements indicates that it is probable that a liability has been
incurred.
13. A company discloses gain contingencies in the notes only when
a high probability exists for realizing them.