CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

All of the following are examples of "accrued expense" types of liabilities except the liability for ______.
A. short-term notes taken out at a bank during the year
B. property taxes owed to local governments for the year
C. estimated product warranty costs on products sold during the year
Explanation: Salaries and wages owed to employees at the end of the year are also accrued expenses.

User Contributed Comments 6

User Comment
Trex Short-term notes are paid within 90 days or less, so there will not be accruels on this case.
Mirza99 if a note is of 90-days then it doesnt mean there will not be an accrual...
e.g., the note is purchased on 15th december and the year ends at 30th dec OR you purchase a note on 15 may while it was issued on 15th april.
o123 yeah mirza...but they've clarified that its during the year
StanleyMo short term is not expense.
zeiad good stanleyMO
bidisha Ie short term assets & short term liabilities
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