会计学英语电子版课件10.ppt

Chapter 10 Reporting and Analyzing Liabilities After studying this chapter, you should be able to: Explain a current liability and identify the major types of current liabilities. Describe the accounting for notes payable. Explain the accounting for other current liabilities. Identify the types of bonds. Chapter 10 Reporting and Analyzing Liabilities After studying this chapter, you should be able to: Prepare the entries for the issuance of bonds and interest expense. Describe the entries when bonds are redeemed. Identify the requirements for the financial statement presentation and analysis of liabilities. Current Liabilities Current liabilities are debts which can reasonably be expected to be paid From existing current assets or through the creation of other current liabilities, and Within 1 year or the operating cycle, whichever is longer Debts that do not meet both criteria are Long-Term Liabilities Types of Current Liabilities Notes Payable Accounts Payable Unearned Revenues Accrued Liabilities Taxes Salaries and Wages Interest Review Question The time period for classifying a liability as current is one year or the operating cycle, whichever is? Probable. Shorter. Possible. Longer. Review Question The time period for classifying a liability as current is one year or the operating cycle, whichever is? Probable. Shorter. Possible. Longer. Notes Payable  Notes payable are Obligations in the form of written notes Often used instead of accounts payable; they give written documentation if needed for legal remedies Used for short-term and long-term financing needs Most often interest-bearing, requiring the borrower to pay interest Note Payable Sales Taxes Payable Are collected from customers Are expressed as a % of sales price Are required by state law. Remitted to the state monthly Usually rung separately from sales on the cash register. Payroll Taxes Various payroll taxes are required by law to be withheld from employees’ gross pay Social Secur