CH 13 Class Notes - CHAPTER 13 CURRENT LIABILITIES AND...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 13 – CURRENT LIABILITIES AND CONTINGENCIES I. Liabilities A. Three Characteristics 1. Probable, future sacrifices of economic benefits 2. That arise from present obligations 3. Resulting from past transactions B. Current Liabilities 1. Payable within 1 year 2. Reported at maturity value C. Types of Current Liabilities 1. Accounts Payable a. b. 2. Notes Payable a. Written promise to pay a sum of money on a specified date b. Interest component (Face*Annual Rate*Time to Maturity) Note: 3. Dividends Payable a. 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
b. c. Dividends in arrears are not recorded as a current liability 4. Refundable Deposits 5. Unearned Revenues 6. Sales Taxes 7. Income Taxes Payable 8. Employee-Related Liabilities a. Payroll Deductions: b. Compensated Absences: 1. Attributable to employees' services already performed 2. The paid absence can be taken in a subsequent year 3. Payment is probable 4. The amount can be reasonably estimated c. Employee Bonuses: 1. Tied to performance (financial and nonfinancial) 2. Compensation expense in the period earned 2
Background image of page 2
D. Noncurrent vs. Current Classification: a. Current Maturities of Long-Term Debt b. Long-Term Liabilities Due on Demand c. Short-Term Obligations Expected to be Refinanced: 1. 2.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 9

CH 13 Class Notes - CHAPTER 13 CURRENT LIABILITIES AND...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online