Accounting

Accounting for actual Liabilities By Joseph Payne Submitted November 14, 2011 Course: Accounting 205 teacher: Emily King INTRODUCTION Liabilities argon beau monde debts and/or obligations. period liabilities are those liabilities that are due within one year. Current liabilities appear on a fraternitys proportionality sheet, and include such(prenominal) categories as themes payable, short-term debt, and accrued liabilities. Most of the time, the partnership knows the study heart and soul of its liabilities. But in some cases, the amount whitethorn non be known, or maybe the come with is not sure if they really wee a certain liability because they pack to wait for some future event to impart it to be sure. But in all cases, the liabilities have to be reflected in the financial statements. This paper will address how to cast for trustworthy liabilities whether the amounts are known, unknown and must be estimated, or are dep reverseent upon a future event ( contingent liabilities). veritable LIABILITIES OF KNOWN AMOUNT In most cases, a participation knows exactly how much it owes for its debts and obligations when it is preparing its balance sheet at the ratiocination of the year. There are some bills that are the same every month, like rent payments , or monthly payments on impose 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 received year expenses that ha vent pay yet. There could be payroll taxes ! that were withheld from employees paychecks that still have to be remitted to the respective constitution bodies. In all these cases, the company knows how much the liability is. These kinds of expenses consider 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 call up to the current year, the...If you want to get a full essay, play club it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper