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Business English Exercises
 

Current Liabilities

Answers to test questions and links to explanations

Home > Teaching Business English > Business English Lessons, Advanced Level # 134
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 All tests  Quiz  FAQ  ESL Forum  Dictionaries Are credit card amounts listed as current liabilities on your bank statements?
current liabilities answer 1
In the normal course of trading with external vendors on credit terms, the University incurs current liabilities (i.e. accounts payable within 12 months).

Correct answer: (a) course

Meaning of business term course
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current liabilities answer 2
These accounts payable are subsequently extinguished by regular creditors payment runs.

Correct answer: (d) extinguished

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current liabilities answer 3
Amounts owed to creditors which have not been paid or recorded at 31 December are accrued, and a liability is recorded in the general ledger; these are reversed in the following year.

Correct answer: (a) accrued

Meaning of business term accrued
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current liabilities answer 4
Procedures established in respect of incurring a liability through the procurement of goods and services are specified in Section 5, 'Expenditure', of the manual.

Correct answer: (d) respect

Meaning of business term respect
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current liabilities answer 5
The University is bound by legislation and industrial awards to provide its employees with various entitlements accumulated as a result of the rendering of their services to the University.

Correct answer: (c) rendering

Meaning of business term rendering
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current liabilities answer 6
Liabilities arising from the accumulation of employee entitlements are recognised in the financial statements.

Correct answer: (b) arising

Meaning of business term arising
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current liabilities answer 7
Staff who commenced employment with the University prior to 1 April 1961 are entitled to receive a gratuity on retirement at age 55 years or later, or on death.

Correct answer: (c) age 55 years

Meaning of business term age 55 years
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current liabilities answer 8
In accordance with The University Act of 1998, the Senate, in the name of and on behalf of the University, may borrow funds by way of loan or overdraft from any bank or other financial institution.

Correct answer: (b) name

Meaning of business term name
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current liabilities answer 9
Borrowings will only be undertaken in exceptional circumstances where operating or research funds are not sufficient to satisfy existing funding requirements.

Correct answer: (b) satisfy

Meaning of business term satisfy
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current liabilities answer 10
A current liability arises where students pay a refundable deposit on locker keys, laboratory equipment, slide boxes, accommodation, etc. to a School.

Correct answer: (a) deposit

Meaning of business term deposit
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