7252569-MIdterm-1 (dragged) 1

7252569-MIdterm-1 (dragged) 1 - Kieso Weygandt Warfield...

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Kieso, Weygandt, Warfield, Young, Wiecek Intermediate Accounting, Eighth Canadian Edition 13-2 CHAPTER REVIEW 1. Chapter 13 explains the basic principles regarding accounting and reporting for current liabilities, asset retirement obligations, and contingent liabilities and commitments. Current Liabilities 2. In general, liabilities involve future disbursements of assets or other future economic benefits (HB Section 1000). A liability is said to have three essential characteristics: a) It is an obligation to others that entails settlement by future transfer or use of cash or other assets, provision of goods or services on a determinable date, or on the occurrence of some specified event; b) the entity has little or no discretion to avoid the obligation; and c) the transaction or other event creating the obligation has already occurred. 3. A distinction is made between financial liabilities and those that are not financial in nature. Financial liabilities are contractual obligations to deliver cash or other financial
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This note was uploaded on 03/28/2012 for the course ACCTG ACC423 taught by Professor Smith during the Spring '10 term at University of Phoenix.

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