1. Explain the characteristics of current liabilities. List and describe the various current liabilities introduced in the chapter. 2. In the formula to calculate interest why is it necessary to apply T (time). What purpose does it serve? 3. What is a selling company's role in collecting sales tax from customers? 4. Describe the typical payroll deductions withheld by a company. 5. Describe the account called unearned revenue. Provide two examples of transactions. 6. Explain the purpose of the account entitled current maturities of long-term debt. 7. Define the terms liquidity and working capital. Explain the two measures used to assess liquidity. 8. Describe the long-term liability called bonds. What are its advantages over common stock. 9. Compare and contrast the following bond types: 1. Secured versus unsecured bonds. 2. Convertible versus callable bonds. 10. Describe the issuing procedures for a company to issue bonds. 11. The interest rate printed on a bond has several names. What are they? 12. Like stocks, bonds can be sold on the secondary market. How are bond prices expressed? 13. At what point in time does a company record journal entries for the issuance of a bond? When a bond is sold on the secondary market will it need to record additional journal entries? 14. Explain the term "time value of money." 15. Explain how the concept of time value of money is used in the context of bond pricing. 16. Explain the purpose/need for using the market interest rate when pricing a bond? 17. Why may it be necessary for a company issuing bonds to sell them at below the face value? 18. Why may it be necessary for a company issuing bonds to sell them at above par value? 19. Explain the affect on total cost of borrowing when a bond is sold below face value. 20. Explain the affect on total cost of borrowing when a is sold at a premium. 21. When a bond is issued at par how is the total cost of borrowing determined? 22. In an installment loan explain the calculation for determining reduction in principle. What is a selling company's role in collecting sales tax from customers? 4. Describe the typical payroll deductions withheld by a company. 5escribe the account called unearned revenue. Provide two examples of transactions. 6. Explain the purpose of the account entitled current maturities of long-term debt. 7. Define the terms liquidity and working capital. Explain the two measures used to assess