Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Loans requiring periodic payments of interest and principal are referred to as:

Contingent liabilities

Installment loans

Accrued expenses

Accounts payable

Previous problemNext problem

Verified step by step guidance

Understand the key terms in the question: 'periodic payments,' 'interest,' and 'principal.' These terms indicate that the loan requires regular payments that include both the interest on the loan and a portion of the principal amount borrowed.

Review the definitions of the options provided: (1) Contingent liabilities are potential liabilities that depend on a future event, not periodic payments. (2) Accrued expenses are expenses incurred but not yet paid, unrelated to loans. (3) Accounts payable are short-term obligations to suppliers, not loans. (4) Installment loans are loans repaid in regular installments, including both interest and principal.

Match the characteristics of the loan described in the question to the correct term. Loans requiring periodic payments of both interest and principal align with the definition of installment loans.

Eliminate the incorrect options based on their definitions: Contingent liabilities, accrued expenses, and accounts payable do not involve periodic payments of interest and principal.

Conclude that the correct answer is 'Installment loans,' as it matches the description provided in the question.