ACCT - Chapter #8 Current and Contingent Liabilities...

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Chapter #8 Current and Contingent Liabilities Learning Objective 1: Explain liability recognition and measurement criteria. Previous chapters focused on the asset side of the accounting equation. In Chapter #8, the focus shifts to the other side of the accounting equation, specifically liabilities. Recall that liabilities are probable future sacrifices of economic benefits that result from past transactions. With the exception of contingent liabilities, all other liabilities are recognized when goods and services are received or the money is borrowed. Learning Objective 2: Identify and record the types of activities that become current liabilities. (E8-18, E8-24, E8-35, E8-36, E8-37, E8-40, E8-42) Types of Current Liabilities 1. Accounts Payable a. Occur when a business purchases goods or services on credit. b. Typically must be paid within 30-60 days. c. No formal contract or agreement. d.
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This note was uploaded on 11/28/2010 for the course ENG 4037 taught by Professor Green during the Spring '10 term at Marshall.

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ACCT - Chapter #8 Current and Contingent Liabilities...

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