Accounting

Accounting for up-to-the-minute Liabilities By Joseph Payne Submitted November 14, 2011 Course: Accounting 205 instructor: Emily King INTRODUCTION Liabilities argon beau monde debts and/or obligations. live liabilities are those liabilities that are due within one year. Current liabilities appear on a fraternitys dimension sheet, and include such(prenominal) categories as themes payable, short-term debt, and accrued liabilities. Most of the time, the lodge knows the study measuring of its liabilities. But in some cases, the amount whitethorn non be known, or maybe the order is not sure if they really wee a certain obligation because they encounter to wait for some future event to retrace it to be sure. But in all cases, the liabilities have to be reflected in the financial statements. This paper will address how to sum up for trustworthy liabilities whether the amounts are known, unknown and must be estimated, or are dep reverseent upon a future event ( contingent liabilities). contemporary LIABILITIES OF KNOWN AMOUNT In most cases, a company knows exactly how much it owes for its debts and obligations when it is preparing its balance sheet at the depot of the year. There are some bills that are the same all month, like rent payments , or monthly payments on rigid interest loans. In other cases, there may be a contract for a certain amount.

There may have been purchases made where the goods have been received but the company hasnt yet salaried the bill. The company may have received other bills at the end of the year for underway year expenses that havent salaried yet. There could be payroll taxes! that were withheld from employees paychecks that still have to be remitted to the respective brass section bodies. In all these cases, the company knows how much the liability is. These kinds of expenses imagine to the current year or must be paid within the next year. In these cases, the liability needs to be shown on the balance sheet in the Current Liabilities section. For expenses opine to the current year, the...If you want to get a full essay, golf club it on our website: BestEssayCheap.com

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