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Use "Yes," "No," or "Optional" to Indicate Whether Each Situation

Question 44

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Use "yes," "no," or "optional" to indicate whether each situation should or should not be classified as a current liability or if accrual is optional

Premises:
Refundable deposits received from customers.
Dividends in arrears on its cumulative preferred stock.
Unearned interest included in the face amount of a note receivable.
Estimated property taxes prior to receiving the tax bill.
Future warranty costs, but the company uses the modified cash basis.
A declared property dividend.
Sick pay benefits that accumulate, but do not vest.
Current portion of a long-term lease obligation that comes due next year.
Current portion of a serial bond payable being paid from a sinking fund.
Short-term debt that is being refinanced on a long-term basis.
Derivative financial instruments that represent fair-value obligations
Responses:
Yes
No
Optional

Correct Answer:

Refundable deposits received from customers.
Dividends in arrears on its cumulative preferred stock.
Unearned interest included in the face amount of a note receivable.
Estimated property taxes prior to receiving the tax bill.
Future warranty costs, but the company uses the modified cash basis.
A declared property dividend.
Sick pay benefits that accumulate, but do not vest.
Current portion of a long-term lease obligation that comes due next year.
Current portion of a serial bond payable being paid from a sinking fund.
Short-term debt that is being refinanced on a long-term basis.
Derivative financial instruments that represent fair-value obligations
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