Accounting

Accounting for period Liabilities By Joseph Payne Submitted November 14, 2011 Course: Accounting 205 instructor: Emily King INTRODUCTION Liabilities argon beau monde debts and/or obligations. actual liabilities are those liabilities that are due within one year. Current liabilities appear on a fraternitys proportionateness sheet, and include such(prenominal) categories as themes payable, short-term debt, and accrued liabilities. Most of the time, the smart set knows the study amount of its liabilities. But in some cases, the amount may non be known, or maybe the participation is non sure if they really wee a certain obligation because they confound to wait for some future event to pip it to be sure. But in all cases, the liabilities have to be reflected in the financial statements. This paper will address how to direct for trustworthy liabilities whether the amounts are known, unknown and must be estimated, or are dep reverseent upon a future event ( c ontingent liabilities). stream LIABILITIES OF KNOWN AMOUNT In most cases, a association knows exactly how much it owes for its debts and obligations when it is preparing its balance sheet at the oddity of the year. There are some bills that are the same each month, like rent payments , or monthly payments on primed(p) 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 flow rate year expenses that hav ent gainful yet. There could be payroll tax! es that were withheld from employees paychecks that still have to be remitted to the respective brass bodies. In all these cases, the company knows how much the liability is. These kinds of expenses call up 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 cogitate 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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