tailieunhanh - Lecture Fundamental accounting principles - Chapter 11: Current liabilities and payroll accounting

After studying this chapter you will be able to understand: Describe current and long-term liabilities and their characteristics, identify and describe known current liabilities, explain how to account for contingent liabilities, compute the times interest earned ratio and use it to analyze liabilities, prepare entries to account for short-term notes payable. | Current Liabilities and Payroll Accounting Chapter 11 PowerPoint Editor: Beth Kane, MBA, CPA Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 11: Current Liabilities and Payroll Accounting 11-C1: Defining Liabilities 2 Defining Liabilities C 1 3 A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. This definition includes three crucial factors: A past transaction or event. A present obligation. A future payment of assets or services. Classifying Liabilities Expected to be paid within one year or the company’s operating cycle, whichever is longer. Current Liabilities Not expected to be paid within one year or the company’s operating cycle, whichever is longer. Long-Term Liabilities C 1 4 Current liabilities, also called short-term liabilities, are obligations due within one year or the company’s operating cycle, whichever is longer. They are expected to be paid using current assets or by creating other current liabilities. Common examples of current liabilities are accounts payable, short-term notes payable, wages payable, warranty liabilities, lease liabilities, taxes payable, and unearned revenues. A company’s obligations not expected to be paid within the longer of one year or the company’s operating cycle are reported as long-term liabilities. They can include long-term notes payable, warranty liabilities, lease liabilities, and bonds payable. They are sometimes reported on the balance sheet in a single long-term liabilities total or in multiple categories. Current and Long-Term Liabilities Current Liabilities as a Percent of Total Liabilities C 1 5 Domino’s Pizza, for instance, reports long-term liabilities of $1,584 million. They are reported after current liabilities. A single liability also can be divided between the current and noncurrent . | Current Liabilities and Payroll Accounting Chapter 11 PowerPoint Editor: Beth Kane, MBA, CPA Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 11: Current Liabilities and Payroll Accounting 11-C1: Defining Liabilities 2 Defining Liabilities C 1 3 A liability is a probable future payment of assets or services that a company is presently obligated to make as a result of past transactions or events. This definition includes three crucial factors: A past transaction or event. A present obligation. A future payment of assets or services. Classifying Liabilities Expected to be paid within one year or the company’s operating cycle, whichever is longer. Current Liabilities Not expected to be paid within one year or the company’s operating cycle, whichever is longer. Long-Term Liabilities C 1 4 Current liabilities, also called short-term liabilities, are obligations due within .

• Kế toán - Kiểm toán
• Accounting principles
• Fundamental accounting principles
• Lecture Fundamental accounting principles
• Current liabilities
• Payroll accounting
• Estimated liabilities
• Accounting information systems
• Fundamental system principles
• Technology based accounting systems
• Accounting information
• Financial accounting
• Managerial accounting
• Managerial cost
• Reporting manufacturing activities
• Merchandising operations
• Accounting cycle
• Completing the accounting cycle
• Classified balance sheet
• Accounting for partnerships
• Partnership form of organization
• Basic partnership accounting