liabilities ch 3

liabilities ch 3 - II. Known (determinable) liabilities A....

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

View Full Document Right Arrow Icon
II. Known (determinable) liabilities A. Known liabilities: liabilities with no uncertainty set by measurable agreements and contracts 1. Also called definitely determinable liabilities B. Accounts payable 1. Also called trade accounts payable 2. Created by purchases made on credit C. Sales tax payable 1. Sellers collect sales taxes from customers when sales occur and remits these collections to the proper government agency 2. Current liabilities 3. Accounting: a) Debit cash b) Credit sales c) Credit sales tax payable D. Unearned revenues 1. Also called deferred revenues, collections in advance or prepayments 2. Amounts received in advance from customers for future payments 3. Example: season ticket sales for sporting events 4. Accounting: a) Receiving of unearned revenue * Debit cash * Credit unearned revenue b) Deliverance of service for which unearned revenue was intended * Debit unearned revenue * Credit revenue E. Short term notes payable 1. A written promise to pay a specified amount on a definite future date within the longer of a year or one operating cycle
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.

This note was uploaded on 02/09/2012 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

Page1 / 3

liabilities ch 3 - II. Known (determinable) liabilities A....

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