Using the attached financial statement footnote. Explain why the application of time value is appropriate to account for the transaction. **Note 5. Accrued Liabilities**The Company’s accrued liabilities consist of the following as of January 31, 2020 and 2019:### Accrued Liabilities Breakdown (in millions)#### January 31,- **2020** - Accrued wages and benefits: $6,093 - Self-insurance: $4,469 - Accrued non-income taxes: $3,039 - Deferred gift card revenue: $1,990 - Other: $6,705 - **Total accrued liabilities**: $22,296- **2019** - Accrued wages and benefits: $6,504 - Self-insurance: $3,979 - Accrued non-income taxes: $2,979 - Deferred gift card revenue: $1,932 - Other: $6,765 - **Total accrued liabilities**: $22,159### Notes:1. **Accrued wages and benefits** include wages, salaries, vacation, bonuses, and other incentive plans.2. **Self-insurance** refers to liabilities such as workers’ compensation, general liability, auto liability, product liability, and certain employee-related healthcare benefits.3. **Accrued non-income taxes** cover payroll, property, value-added, sales, and miscellaneous other taxes.4. **Other accrued liabilities** include interest, maintenance, utilities, legal contingencies, and advertising expenses.This detailed breakdown outlines the different components of the accrued liabilities, showing how financial responsibilities were managed across different areas from 2019 to 2020.

The following transactions are accounted for the applicability of TVM as their value will increase…

Note 5. Accrued Liabilities The Company's accrued liabilities consist of the following as of January 31, 2020 and 2019: January 31, (Amounts in millions) 2020 2019 Accrued wages and benefits" Self-insurance 6,093 S 6,504 4,469 3,979 Accrued non-income taxes" 3,039 2,979 Deferred gift card revenue 1,990 1,932 Other 6,705 6,765 Total accrued liabilities 22,296 S 22,159 (1) Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans. (2) Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits. (3) Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellancous other taxes. (4) Other accrued liabilities consist of various items such as interest, maintenance, utilities, legal contingencies, and advertising.

Note 5. Accrued Liabilities The Company's accrued liabilities consist of the following as of January 31, 2020 and 2019: January 31, (Amounts in millions) 2020 2019 Accrued wages and benefits" Self-insurance 6,093 S 6,504 4,469 3,979 Accrued non-income taxes" 3,039 2,979 Deferred gift card revenue 1,990 1,932 Other 6,705 6,765 Total accrued liabilities 22,296 S 22,159 (1) Accrued wages and benefits include accrued wages, salaries, vacation, bonuses and other incentive plans. (2) Self-insurance consists of insurance-related liabilities, such as workers' compensation, general liability, auto liability, product liability and certain employee-related healthcare benefits. (3) Accrued non-income taxes include accrued payroll, property, value-added, sales and miscellancous other taxes. (4) Other accrued liabilities consist of various items such as interest, maintenance, utilities, legal contingencies, and advertising.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Using the attached financial statement footnote. Explain why the application of time value is appropriate to account for the transaction.

**Note 5. Accrued Liabilities**

The Company’s accrued liabilities consist of the following as of January 31, 2020 and 2019:

### Accrued Liabilities Breakdown (in millions)

#### January 31,
- **2020**
- Accrued wages and benefits: $6,093
- Self-insurance: $4,469
- Accrued non-income taxes: $3,039
- Deferred gift card revenue: $1,990
- Other: $6,705
- **Total accrued liabilities**: $22,296

- **2019**
- Accrued wages and benefits: $6,504
- Self-insurance: $3,979
- Accrued non-income taxes: $2,979
- Deferred gift card revenue: $1,932
- Other: $6,765
- **Total accrued liabilities**: $22,159

### Notes:
1. **Accrued wages and benefits** include wages, salaries, vacation, bonuses, and other incentive plans.
2. **Self-insurance** refers to liabilities such as workers’ compensation, general liability, auto liability, product liability, and certain employee-related healthcare benefits.
3. **Accrued non-income taxes** cover payroll, property, value-added, sales, and miscellaneous other taxes.
4. **Other accrued liabilities** include interest, maintenance, utilities, legal contingencies, and advertising expenses.

This detailed breakdown outlines the different components of the accrued liabilities, showing how financial responsibilities were managed across different areas from 2019 to 2020.

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