Match Each Definition with the Correct Term Below

Multiple Choice

Match each definition with the correct term below.
-Commitment

A) Definite debts or obligations whose exact dollar amount cannot be known until a later date.
B) Liabilities due beyond one year or beyond the normal operating cycle.
C) Unsecured loans that are sold to the public ,usually through professionally managed investment firms.
D) The cost of using money for a specific period.
E) A potential liability that depends on a future event arising out of a past transaction.
F) Debts and obligations that a company expects to satisfy within one year or within its normal operating cycle.
G) The interest cost for two or more periods when,after each period,the interest earned in that period is added to the amount on which interest is calculated in future periods.
H) A legal obligation that does not meet the technical requirements for recognition as a liability.
I) A person who is not an employee of the organization and so is not accounted for under the payroll system.
J) The interest cost for one or more periods when the principal sum stays the same from period to period.