Blujay Aviation

CHAPTER 9

Current Liabilities, Contingencies,

and the Time Value of Money

OVERVIEW OF EXERCISES, PROBLEMS, AND CASES

Estimated

Time in

Learning Outcomes 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. Show that you understand how changes in current liabilities 9 5 Easy

affect the statement of cash flows. 10 5 Mod

4. Determine when contingent liabilities should be presented on the 11 15 Mod

balance sheet or disclosed in notes and how to calculate their amounts.

5. Explain the difference between simple and compound interest. 12 20 Mod

6. Calculate amounts using the future value and present value concepts. 13 5 Easy

14 5 Mod

15 10 Mod

16 10 Mod

20* 10 Diff

21* 10 Diff

7. Apply the compound interest concepts to some common 17 5 Mod

accounting situations. 18 10 Mod

19 10 Diff

20* 10 Diff

21* 10 Diff

*Exercise, problem, or case covers two or more learning outcomes

Level = Difficulty levels: Easy; Moderate (Mod); Difficult (Diff)

Problems Estimated

and Time in

Learning Outcomes Alternates Minutes Level

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

the balance sheet.

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

9* 30 Mod

3. Show that you understand how changes in current 2 30 Mod

liabilities affect the statement of cash flows. 3 20 Diff

4. Determine when contingent liabilities should be presented on the 4 20 Mod

balance sheet or disclosed in notes and how to calculate 5 10 Mod

their amounts. 10* 10 Mod

5. Explain the difference between simple and compound interest. 6 40 Diff

9* 30 Mod

6. Calculate amounts using the future value and present value 7 25...