Accounting

Accounting for Current Liabilities By Joseph Payne Submitted November 14, 2011 Course: Accounting 205 instructor: Emily King INTRODUCTION Liabilities argon beau monde debts and/or obligations. Current liabilities ar those liabilities that are due within peerless year. Current liabilities appear on a fraternitys balance wheel airplane, and include such(prenominal) categories as themes payable, short-term debt, and accrued liabilities. most(prenominal) of the time, the connection knows the study sum total of its liabilities. only in more or less cases, the amount may non be known, or maybe the guild is not sure if they real wee a certain(prenominal) liability because they pose to dep balance for most future font to make it to be sure. But in all cases, the liabilities pee to be reflected in the monetary statements. This paper will look at how to account for trustworthy liabilities whether the amounts are known, unknown and must be estimated, or are dep reverseent upon a future event ( dependant on(p) liabilities). CURRENT LIABILITIES OF KNOWN AMOUNT In most cases, a caller knows exactly how much it owes for its debts and obligations when it is preparing its balance sheet at the end of the year. There are some bills that are the same each month, like rent payments , or monthly payments on dictate interest loans. In different cases, there may be a contract for a certain amount.

There may submit down been purchases made where the goods sacrifice been received but the fraternity hasnt yet salaried the bill. The company may have received other bills at the end of the year for topical year expenses that havent give yet. There could be payroll taxes that were withheld from employees paychecks that still have to be remitted to the respective memorial tablet bodies. In all these cases, the company knows how much the liability is. These kinds of expenses remember 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 imagine to the current year, the...If you want to get a full essay, play club it on our website: Ordercustompaper.com

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