Liabilities WGUD104 Exam | Questions and
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Terms in this set (69)
, Mortgage Payable A mortgage note payable is a promissory note
secured by a document called a mortgage that
pledges title to property as security for the loan.
There is no discount or premium associated with
mortgages. However, if points are assessed, the
cash received by the borrower will be less than the
face/principal amount of the mortgage note but
the borrower is still obligated for the face/principal
amount. A point is 1 percent of the face/principal
amount of the mortgage note. Students struggle
with this subject. Please make sure to carefully
review it.
Mortgages may be payable in full at maturity or in
installments over the life of the note. If payable at
maturity, the company classifies its mortgage
payable as a long-term liability on the balance
sheet until such time as the approaching maturity
date warrants shoeing it as a current liability. If it is
payable in installments, the current installments
due as current liabilities, with the remainder as a
long-term liability. The property pledged to the
mortgage note is disclosed in the notes to the
financial statements.
Valuation of Liabilities 1. Operating liabilities are definite to exist at the
Liabilities can be divided into three balance sheet date and their amount is certain
categories: 2. Estimated liabilities are definite to exist at the
balance sheet date and their amount needs to
estimated.
Contingent liabilities are uncertain to exist at the
balance sheet date and depend upon some future
event occurring. Their amount needs to be
reasonably estimated.
Answers | Verified Solutions | 2026 Edition | Pass
Guaranteed
Save
Terms in this set (69)
, Mortgage Payable A mortgage note payable is a promissory note
secured by a document called a mortgage that
pledges title to property as security for the loan.
There is no discount or premium associated with
mortgages. However, if points are assessed, the
cash received by the borrower will be less than the
face/principal amount of the mortgage note but
the borrower is still obligated for the face/principal
amount. A point is 1 percent of the face/principal
amount of the mortgage note. Students struggle
with this subject. Please make sure to carefully
review it.
Mortgages may be payable in full at maturity or in
installments over the life of the note. If payable at
maturity, the company classifies its mortgage
payable as a long-term liability on the balance
sheet until such time as the approaching maturity
date warrants shoeing it as a current liability. If it is
payable in installments, the current installments
due as current liabilities, with the remainder as a
long-term liability. The property pledged to the
mortgage note is disclosed in the notes to the
financial statements.
Valuation of Liabilities 1. Operating liabilities are definite to exist at the
Liabilities can be divided into three balance sheet date and their amount is certain
categories: 2. Estimated liabilities are definite to exist at the
balance sheet date and their amount needs to
estimated.
Contingent liabilities are uncertain to exist at the
balance sheet date and depend upon some future
event occurring. Their amount needs to be
reasonably estimated.
