Exam4 - Flashcards - The flashcards are formatted for...

Info iconThis preview shows pages 1–17. Sign up to view the full content.

View Full Document Right Arrow Icon
Known and Estimated Amounts Current Liabilities
Background image of page 1

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

View Full DocumentRight Arrow Icon
Liabilities payable within one year (or within the company’s normal operating cycle if longer than one year). Two categories of current liabilities.
Background image of page 2
Accrue Interest Expense Current Liabilities
Background image of page 3

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

View Full DocumentRight Arrow Icon
Many give rise to interest expense. Needed with some current liabilities at year-end if the liability is still standing.
Background image of page 4
Principal * Rate * Time Short-term N/P and Current Portion of Long- Term Debt
Background image of page 5

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

View Full DocumentRight Arrow Icon
Current liabilities that need to accrue interest expense. Interest expense equation:
Background image of page 6
Accrue Matures
Background image of page 7

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

View Full DocumentRight Arrow Icon
A note is due, and you have to pay it. Recognized, but not yet paid; to properly match revenues and expenses.
Background image of page 8
Current Liability Current Portion of Long-Term Debt
Background image of page 9

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

View Full DocumentRight Arrow Icon
Amount of the debt principal that must be paid within one year. Current portion of long- term debt will be presented as a ____ on the BS; long-term portion presented separately.
Background image of page 10
Accrued Expenses Current Portion of Long-Term Debt
Background image of page 11

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

View Full DocumentRight Arrow Icon
i.e. part of the mortgage paid that year Expenses that have been incurred, but not yet paid.
Background image of page 12
Unearned Revenues Accrued Expenses
Background image of page 13

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

View Full DocumentRight Arrow Icon
Adjusting entries, such as salaries payable, income tax payable, etc. Cash received for goods or services in advance of performance.
Background image of page 14
Unearned Revenues Unearned Revenues
Background image of page 15

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

View Full DocumentRight Arrow Icon
the time of performance. Customer pays you, but
Background image of page 16
Image of page 17
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 71

Exam4 - Flashcards - The flashcards are formatted for...

This preview shows document pages 1 - 17. Sign up to view the full document.

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