
Concept Introduction
Current Liabilities: Current Liabilities are the debts or economic obligations that a company owes to its creditors and that have to be settled within one year or within its operating cycle, whichever period is longer.
Accrued Expenses: Accrued Expenses are a company’s current liabilities that have been incurred but are not paid yet.
Accrued compensation: Accrued Compensation is a part of accrued expenses of a company that it owes to pay to its workers for the work done by them. Since the work is performed by the employees, the company has incurred the salaries or wages expense but it has not paid its employees for the work performed. Therefore, accrued compensation becomes a liability, particularly current liability for the company.
Accrued Benefits: Accrued Benefits are a part of accrued expenses of a company that it owes to pay to its employees for the benefits earned by them. These benefits include vacation benefits and other employee benefits. Since the benefits are earned by the employees, the benefits expenses are incurred by the company but the benefits are not availed by the employees or are not paid to them by the company. Therefore, accrued compensation becomes a liability, particularly current liability for the company.
To State: The accrued expenses (liabilities) that Google reports at December 31, 2015 by referring to Google’s

Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
Fundamental Accounting Principles
- Please provide answer this accounting question solve this problemarrow_forwardAshworth Enterprises has: • Current assets = $6,500 • Net fixed assets = $30,700 • Current liabilities = $5,200 • Long-term debt = $12,300 a) The value of the shareholders' equity account. b) The net working capital.arrow_forwardFinancial Accountingarrow_forward
- Don't use ai given answer accounting questionsarrow_forwardWhat is the gross profit of this financial accounting question?arrow_forwardDanforth Technologies uses an activity-based costing system with the following three activity cost pools: • Fabrication: 9,500 machine-hours • Order Processing: 135 orders Other: Not applicable The company has provided the following data concerning its costs: • Wages and Salaries = $480,000 • Depreciation = $190,000 • Occupancy = $225,000 Total Costs = $895,000 The distribution of resource consumption across activity cost pools is: • Wages and Salaries: 15% for Fabrication • Depreciation: 10% for Fabrication Occupancy: 12% for Fabrication Find the activity rate for the Fabrication cost pool.arrow_forward
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education





