Acct 4120 Chapter 13 Spiceland 5th edition

Acct 4120 Chapter 13 Spiceland 5th edition - Acct4120

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Acct 4120 Chapter 13 Current Liabilities and Contingencies
Background image of page 1

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

View Full DocumentRight Arrow Icon
Accounting Equation Assets Liabilities + Stockholders’  Equity Company’s economic  resources (or  benefits) Non-owner claims against  resources Owners claims  against resources Focus of Acct 3110 Chapter 13 Current  liabilities Chapter 14 Bonds Chapter 15 Leases Chapter 16 Income taxes Chapter 17 Pensions Chapter 18  Chapter 13 page 2
Background image of page 2
Characteristics of Liabilities . . . Resulting from past transactions or events . . . Arising from present obligations to other entities . . . Probable future sacrifices of economic benefits . . . Chapter 13 page 3
Background image of page 3

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

View Full DocumentRight Arrow Icon
Two classifications of liabilities: LIABILITIES Long-term Liabilities Expected to be satisfied with current assets or by the creation of other current liabilities. Current Liabilities Obligations payable within one year or one operating cycle, whichever is longer. Chapter 13 page 4
Background image of page 4
Operating Cycle How long it takes a company to go  from “cash to cash.” $ A/R Inventory Chapter 13 page 5
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 For classification, exceptions are made if  For classification, exceptions are made if  management has the intent and ability  management has the intent and ability  to: to: Refinance it Refinance it Convert it into stock Convert it into stock Retire it from a bond sinking fund Retire it from a bond sinking fund Chapter 13 page 6
Background image of page 6
Examples of Current Liabilities Current Liabilities Short-term notes payable Accrued expenses Cash dividends payable Taxes payable Accounts payable Unearned revenues Chapter 13 page 7
Background image of page 7

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

View Full DocumentRight Arrow Icon
Interest Calculation Chapter 13 page 8 Amount borrowed Interest rate is always stated as an annual rate. Interest owed is adjusted for the portion of the year that the face amount is outstanding.
Background image of page 8
Notes without a stated  Notes without a stated  interest rate carry an  interest rate carry an  implicit, or effective  implicit, or effective  rate. rate. The face of the note  The face of the note  includes the amount  includes the amount  borrowed and the  borrowed and the  interest. interest.
Background image of page 9

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

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/20/2011 for the course ACCT 4120 taught by Professor Franz during the Spring '11 term at Toledo.

Page1 / 28

Acct 4120 Chapter 13 Spiceland 5th edition - Acct4120

This preview shows document pages 1 - 10. Sign up to view the full document.

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