1. What is the definition of current liabilities? Why is it important to distinguish between current and long-term liabilities? 2. Most firms attempt to pay their accounts payable within the discount...

1. What is the definition of current liabilities? Why is it important to distinguish between current and long-term liabilities?

2. Most firms attempt to pay their accounts payable within the discount period to take advantage of the discount. Why is that normally a sound financial move?

3. What is a contingent liability? Why are contingent liabilities accounted for differently than contingent assets?