Accounting Ch7 part 1

Accounting Ch7 part 1 - Chapter 7: Accounting for and...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 7: Accounting for and Presentation of Liabilities The term accrued expenses is often used on the balance sheet to describe liabilities. Current liabilities are those liabilities that will be paid within one year of the current balance sheet date. Current Liabilities: Accounts Payable, Short-Term Debt (Notes Payable), Current Maturities of Long-Term Debt, Unearned Revenue or Deferred Credits, Other Accrued Liabilities Noncurrent Liabilities: Long-Term Debt (Bonds Payable), Deferred Tax Liabilities, Noncontrolling (Minority) Interest in Subsidiaries The recognition of a liability usually means that an expense has been recorded. Expenses always reduce income. Lower net income means lower ROI. Working-capital loan – a short-term loan that is expected to be repaid from collections of accounts receivable, that will be generated by the sale of inventory. Short-term loan usually has a maturity date specifying when the loan is to be repaid.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Accounting Ch7 part 1 - Chapter 7: Accounting for and...

This preview shows document pages 1 - 2. Sign up to view the full document.

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