61) An accrued expense is an expense incurred by the company but not yet paid in cash.
62)
Sales tax payable
is an estimated liability arising out of sales revenue that has been reported on the income statement.
63) The matching principle requires that warranty expense be incurred in the same period that the sales revenue is recognized.
64) A contingent liability is an actual liability, with the dollar amount of the liability dependent on a future event arising out of a past transaction.
65) A contingent liability that has a remote chance of occurrence should be disclosed in the financial statement footnotes.
66) A contingent liability that has a probable chance of occurrence should be disclosed in the financial statement footnotes.
67) Unearned revenues occur when a company receives cash from customers before earning the revenue.
68) The phrase
term bonds
applies when all the bonds in a particular issue mature in installments over a period of time.
69) A bond issued at a premium typically has a market price that decreases toward maturity value.
70) A bond issued at a discount typically has a market price that decreases toward maturity value.