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Lecture Survey of accounting (3/e) - Chapter 7: Accounting for liabilities
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Lecture Survey of accounting (3/e) - Chapter 7: Accounting for liabilities
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In this chapter, you will be able to: Show how notes payable and related interest expense affect financial statements; show how sales tax liabilities affect financial statements; define contingent liabilities and explain how they are reported in financial statements;. | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7: Accounting for Liabilities Learning Objectives Show how notes payable and related interest expense affect financial statements. Show how sales tax liabilities affect financial statements. Define contingent liabilities and explain how they are reported in financial statements. Explain how warranty obligations affect financial statements. Show how installment notes affect financial statements. Show how a line of credit affects financial statements. Explain how to account for bonds issued at face value and their related interest costs. Use the straight-line method to amortize bond discounts and premiums. Distinguish between current and noncurrent assets and liabilities. Prepare a classified balance sheet. Use the effective interest rate method to amortize bond discounts and premiums (Appendix). In this chapter, the learning objectives are: Show how notes payable and related interest | McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7: Accounting for Liabilities Learning Objectives Show how notes payable and related interest expense affect financial statements. Show how sales tax liabilities affect financial statements. Define contingent liabilities and explain how they are reported in financial statements. Explain how warranty obligations affect financial statements. Show how installment notes affect financial statements. Show how a line of credit affects financial statements. Explain how to account for bonds issued at face value and their related interest costs. Use the straight-line method to amortize bond discounts and premiums. Distinguish between current and noncurrent assets and liabilities. Prepare a classified balance sheet. Use the effective interest rate method to amortize bond discounts and premiums (Appendix). In this chapter, the learning objectives are: Show how notes payable and related interest expense affect financial statements. Show how sales tax liabilities affect financial statements. Define contingent liabilities and explain how they are reported in financial statements. Explain how warranty obligations affect financial statements. Show how installment notes affect financial statements. Show how a line of credit affects financial statements. Explain how to account for bonds issued at face value and their related interest costs. Use the straight-line method to amortize bond discounts and premiums. Distinguish between current and noncurrent assets and liabilities. Prepare a classified balance sheet. Use the effective interest rate method to amortize bond discounts and premiums (Appendix). Reporting Contingent Liabilities A contingent liability is a potential obligation arising from a past event. Generally accepted accounting principles require that companies classify contingent liabilities into three different categories depending on the likelihood of their .
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