Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable. To identify : The correct reporting place of estimated amounts of known liabilities.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Need help this question

Financial Accounting

Provide answer ABC

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 6

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Conclusion

Hence, the correct answer option is (b).

Answer 7

Chapter 11, Problem 6QC

To determine

Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be Current liabilities, and Long-term liabilities. Examples: Creditors, Bills payable, Bank overdraft, Salaries and wages payable, and Notes payable.

To identify: The correct reporting place of estimated amounts of known liabilities.

Answer 8

Expert Solution & Answer

Answer to Problem 6QC

(b) reported on the balance sheet.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Explanation for correct answer: The estimated amounts of a transaction which is occurred in the past is called as known liabilities. Since they are liabilities, they must be reported on the balance sheet.

Explanation for incorrect answers:

Option (a) is incorrect because known liabilities cannot be ignored, they should not be avoided.
Option (c) is incorrect because on the income statement, only expenses and revenues should be reported, but not the liabilities.
Option (d) is incorrect because notes to financial statements consist of additional data related to accounting methodologies of the income statement, balance sheet.

Answer 12

Conclusion

Hence, the correct answer option is (b).

Answer 13

Ch. 11 - Prob. 6QC Ch. 11 - Prob. 1QC Ch. 11 - A company sells 180,000 (selling price) of goods...Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 7QC Ch. 11 - Vega Company expects to pay a 4% bonus on net...Ch. 11 - Prob. 9QC Ch. 11 - Prob. 10QC

Concept explainers

Videos

Answer to Problem 6QC

Explanation of Solution

Want to see more full solutions like this?

Chapter 11 Solutions