CHAPTER 9
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Current Liabilities, Contingencies, and the Time Value of Money

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES Estimated Time in
Learning Objective Exercises Minutes Level

1. Identify the components of the current liability category of 1 10 Easy the balance sheet. 2 10 Easy 3 10 Easy

2. Examine how accruals affect the current liability category. 4 20 Mod 5 15 Mod 6 10 Mod 7 15 Mod 8 15 Mod

3. Demonstrate an understanding of how changes in current liabilities 9 5 Easy affect the statement of cash flows. 10 5 Mod 11 5 Mod

4. Determine when contingent liabilities should be presented on the 12 15 Mod balance sheet or disclosed in notes and how to calculate their amounts.

5. Explain the difference between simple and compound interest. 13 20 Mod

6. Calculate amounts using the future value and present value concepts. 14 5 Easy 15 5 Mod 16 10 Mod 17 10 Mod 24* 10 Diff 25* 10 Diff

7. Apply the compound interest concepts to some common 18 5 Mod accounting situations. 19 10 Mod 20 10 Diff 24* 10 Diff 25* 10 Diff

8. Demonstrate an understanding of the deductions 21 15 Mod and expenses for payroll accounting. (Appendix 9A) 22 20 Mod

9. Determine when compensated absences must be 23 10 Diff accrued as a liability. (Appendix 9A)

*Exercise, problem, or case covers two or more learning objectives
Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

Problems Estimated and Time in
Learning Objective Alternates Minutes Level

1. Identify the components of the current liability category of 12* 10 Mod the balance sheet.

2. Examine how accruals affect the current liability category. 1 40 Mod 11* 30 Mod

3. Demonstrate an understanding of how changes in current liabilities 2