Accounting

Accounting for real Liabilities By Joseph Payne Submitted November 14, 2011 Course: Accounting 205 instructor: Emily King INTRODUCTION Liabilities argon beau monde debts and/or obligations. accredited liabilities are those liabilities that are due within one year. Current liabilities appear on a fraternitys remainder sheet, and include such(prenominal) categories as themes payable, short-term debt, and accrued liabilities. Most of the time, the fraternity knows the study come in of its liabilities. But in some cases, the amount may non be known, or maybe the phoner is not sure if they really wee a certain obligation because they nourish to wait for some future event to stag it to be sure. But in all cases, the liabilities have to be reflected in the financial statements. This paper will address how to chronicle for trustworthy liabilities whether the amounts are known, unknown and must be estimated, or are dep reverseent upon a future event ( contingent liabilities). certain LIABILITIES OF KNOWN AMOUNT In most cases, a confederacy knows exactly how much it owes for its debts and obligations when it is preparing its balance sheet at the finale of the year. There are some bills that are the same each month, like rent payments , or monthly payments on compulsive 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 certain year expenses that havent remu nerative yet. There could be payroll taxes t! hat 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 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 ruminate to the current year, the...If you want to get a full essay, play club it on our website: BestEssayCheap.com

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