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Business Accounting Financial Accounting: Information for Decisions

Current liabilities are the company’s short-term financial obligations that are due for one year or more that the normal company’s operating cycle. To determine: Classifying of liabilities. Current liabilities are shown under the liabilities side of the balance sheet . Examples: Creditors, Accounts payables, Short-term loans. Portion of long-term note due in 15 months. Notes payable are written agreement (promissory notes). The balance in Notes payable represents the amounts that remain to be paid. Notes in 15 month is current liabilities because the company’s operating cycle is 15 months and note due is also in 15 months. The amount due within one year of the balance sheet date will be a current liability, Company’s operating cycle is 15 months. So, it is Current Liability. Note payable maturing in 2 years. Note payable maturing in 2 years is not current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. As such, notes payable is more than the Company’s operating cycle. So, it is a long term liability. Note payable due in 18 months. Note payable due in 18 months is not current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. As such, notes payable is more than the Company’s operating cycle. So, it is a long term liability. Note payable due in 11 months. Note payable due in 11 months is current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. Under the Company’s operating cycle which is 15 months. So, it is current liability. FICA taxes payable. FICA taxes payable is current liability until the taxes are paid to the (IRS) Internal Revenue Service. Salaries payable. Salary payables are the amount of liability that company owns towards its employees for the services that are provided by them but not yet paid. Salaries payables are considered as current liability.

Current liabilities are the company’s short-term financial obligations that are due for one year or more that the normal company’s operating cycle. To determine: Classifying of liabilities. Current liabilities are shown under the liabilities side of the balance sheet . Examples: Creditors, Accounts payables, Short-term loans. Portion of long-term note due in 15 months. Notes payable are written agreement (promissory notes). The balance in Notes payable represents the amounts that remain to be paid. Notes in 15 month is current liabilities because the company’s operating cycle is 15 months and note due is also in 15 months. The amount due within one year of the balance sheet date will be a current liability, Company’s operating cycle is 15 months. So, it is Current Liability. Note payable maturing in 2 years. Note payable maturing in 2 years is not current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. As such, notes payable is more than the Company’s operating cycle. So, it is a long term liability. Note payable due in 18 months. Note payable due in 18 months is not current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. As such, notes payable is more than the Company’s operating cycle. So, it is a long term liability. Note payable due in 11 months. Note payable due in 11 months is current liabilities. The amount due within one year of the balance sheet date will be a current liability, and the amount not due within one year of the balance sheet date will be a long term liability. Under the Company’s operating cycle which is 15 months. So, it is current liability. FICA taxes payable. FICA taxes payable is current liability until the taxes are paid to the (IRS) Internal Revenue Service. Salaries payable. Salary payables are the amount of liability that company owns towards its employees for the services that are provided by them but not yet paid. Salaries payables are considered as current liability.

Solution Summary: The author explains that current liabilities are the company's short-term financial obligations that are due for one year or more than the normal company’s operating cycle.

Financial Accounting: Information for Decisions

Financial Accounting: Information for Decisions

8th Edition

ISBN: 9781259533006

Author: John J Wild

Publisher: McGraw-Hill Education

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Financial Accounting: Information for Decisions

Ch. 9 - Prob. 1DQ Ch. 9 - Prob. 2DQ Ch. 9 - Prob. 3DQ Ch. 9 - Prob. 4DQ Ch. 9 - What is the combined amount (in percent) of the...Ch. 9 - What is the current Medicare tax rate? This rate...Ch. 9 - Prob. 7DQ Ch. 9 - Prob. 8DQ Ch. 9 - Prob. 9DQ Ch. 9 - Why are warranty liabilities usually recognized on...

Ch. 9 - Prob. 11DQ Ch. 9 - Prob. 12DQ Ch. 9 - Prob. 13DQ Ch. 9 - Prob. 14DQ Ch. 9 - Prob. 15DQ Ch. 9 - Prob. 16DQ Ch. 9 - Prob. 17DQ Ch. 9 - Prob. 1QS Ch. 9 - Prob. 2QS Ch. 9 - Ticketsales, Inc., receives $5,000,000 cash in...Ch. 9 - Prob. 4QS Ch. 9 - Prob. 5QS Ch. 9 - Prob. 6QS Ch. 9 - Prob. 7QS Ch. 9 - Prob. 8QS Ch. 9 - Prob. 9QS Ch. 9 - Prob. 10QS Ch. 9 - Prob. 11QS Ch. 9 - Prob. 12QS Ch. 9 - Sera Corporation has made and recorded its...Ch. 9 - Prob. 1E Ch. 9 - Prob. 2E Ch. 9 - Prob. 3E Ch. 9 - Interest-bearing notes payable with year-end...Ch. 9 - Prob. 5E Ch. 9 - Prob. 6E Ch. 9 - Prob. 7E Ch. 9 - Prob. 8E Ch. 9 - Prob. 9E Ch. 9 - Hitzu Co. sold a copier costing $4,800 with a...Ch. 9 - Prob. 11E Ch. 9 - Prob. 12E Ch. 9 - Accounting for contingent liabilities C3 Prepare...Ch. 9 - Prob. 14E Ch. 9 - Prob. 15E Ch. 9 - Prob. 16E Ch. 9 - Prob. 18E Ch. 9 - Prob. 1PSA Ch. 9 - Prob. 2PSA Ch. 9 - Prob. 3PSA Ch. 9 - Prob. 4PSA Ch. 9 - Prob. 5PSA Ch. 9 - Entries for payroll transactions P2 P3 P5...Ch. 9 - Prob. 1PSB Ch. 9 - Prob. 2PSB Ch. 9 - Fishing Guides Co. has four employees. FICA Social...Ch. 9 - Prob. 4PSB Ch. 9 - Shown here are condensed income statements for two...Ch. 9 - Prob. 6PSB Ch. 9 - Prob. 9SP Ch. 9 - Refer to the financial statements of Apple in...Ch. 9 - Key figures for Apple and Google follow. *Apple...Ch. 9 - Prob. 3BTN Ch. 9 - Prob. 5BTN Ch. 9 - Assume that your team is in business and you must...Ch. 9 - Prob. 7BTN Ch. 9 - Prob. 8BTN Ch. 9 - Prob. 9BTN

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