ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 272

4. Discount on Notes Payable is a contra account to Notes
Payable on the balance sheet.

5. All long-term debt maturing within the next year must be
classified as a current liability on the balance sheet.

6. A short-term obligation can be excluded from current
liabilities if the company intends to refinance it on a long-term
basis.

7. Many companies do not segregate the sales tax collected
and the amount of the sale at the time of the sale.