1) A current liability is a debt that can be expected to be paid within ______________ year or the ______________, whichever is longer

1) A current liability is a debt that can be expected to be paid within ______________ year or the ______________, whichever is longer.

2. Liabilities are classified on the statement of financial position as being _______________ liabilities or ______________ liabilities.

3. Obligations in written form are called ______________ and usually require the borrower to pay interest.

4. With an interest-bearing note, a borrower must pay the ________________ of the note plus _________________ at maturity.

5. Sales taxes collected from customers are a ______________ of the business until they are remitted to the taxing agency.
6. Bonds that mature at a single specified future date are called _______________ bonds, whereas bonds that mature in installments are called ________________ bonds.
7. The terms of a bond issue are set forth in a formal legal document called a bond ________________.
8. Unsecured bonds that are issued against the general credit of the borrower are called ________________ bonds.
9. If bonds were issued at a premium, then the contractual interest rate was _____________ than the market interest rate.
10. If bonds are issued at face value (par), it indicates that the ________________ interest rate must be equal to the ________________ interest rate.
11. If a $1 million, 10%, 10-year bond issue was sold at 97, the cash proceeds from the issuance of the bonds amounted to $________________.
12. The ________________ of bonds is the face value of the bonds adjusted for bond discount or bond premium amortized up to the redemption date.
13. The market price of a bond is obtained by discounting to its present value the _______________ paid at maturity, and all _____________ payments to be made over the term of the bond.
14. When there is a ________________ difference between the straight-line and effective-interest methods of amortization, the ________________ method is required under GAAP.
15. A method of amortizing bond discount or premium that allocates an equal amount each period is the ________________ method.
16. The straight-line method of amortization allocates the same amount to _______________ in each interest period.