ch13 - 13-11.Types and valuation of current...

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Unformatted text preview: 13-11.Types and valuation of current liabilities.2.Short-term debt expected to be refinanced.3.Employee-related liabilities.4.Criteria used to account for and disclose gain and loss contingencies.5.Accounting for different types of loss contingencies.6.Presentation and analysis of liabilities and contingencies.Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives13-2What is a Liability?What is a Liability?What is a Liability?What is a Liability?FASB, defines liabilitiesas: Probable Future Sacrifices of Economic Benefitsarising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.13-3What is a Current Liability?What is a Current Liability?What is a Current Liability?What is a Current Liability?Current liabilitiesare obligations whose liquidation is reasonably expected to require use of existing resources properly classified as current assets, or the creation of other current liabilities.LO 1 Describe the nature, type, and valuation of current liabilities.The operating cycleis the period of time elapsing between the acquisition of goods and services and the final cash realization resulting from sales and subsequent collections.13-4What is a Current Liability?What is a Current Liability?What is a Current Liability?What is a Current Liability?Typical Current Liabilities:Accounts payable.Notes payable.Current maturities of long-term debt.Short-term obligations expected to be refinanced.Dividends payable.Customer advances and deposits.Unearned revenues.Sales taxes payable.Income taxes payable.Employee-related liabilities.LO 1 Describe the nature, type, and valuation of current liabilities.13-5Balances owed to others for goods, supplies, or services purchased on open account.Accounts Payable(trade accounts payable)What is a Current Liability?What is a Current Liability?What is a Current Liability?What is a Current Liability?LO 1 Describe the nature, type, and valuation of current liabilities.Time lag between the receipt of services or acquisition of title to assets and the payment for them. Terms of the sale (e.g., 2/10, n/30 or 1/10, E.O.M.) usually state period of extended credit, commonly 30 to 60 days.13-6Written promises to pay a certain sum of money on a specified future date.Notes PayableWhat is a Current Liability?What is a Current Liability?What is a Current Liability?What is a Current Liability?LO 1 Describe the nature, type, and valuation of current liabilities.Arise from purchases, financing, or other transactions.Notes classified as short-term or long-term.Notes may be interest-bearing or zero-interest-bearing.13-7Portion of bonds, mortgage notes, and other long-term indebtedness that matures within the next fiscal year....
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ch13 - 13-11.Types and valuation of current...

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