Category Archive for: Liabilities


The types of . discussed up to this point are encountered in all types of business organizations-large and small. We will now address some special types of’ liabilities that are found primarily in the financial statements of large, publicly owned corporations. Bonds Payable Financially sound corporations may arrange limited amounts of long-term financing by  issuing…

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Cash Effects

It is important to note that the total monthly cash payment (column A) does not change from to period. What does change, however, is the portion of the cash payment allocated to interest expense each month (column B) versus me amount by which te outstanding loan balance is  reduced (column Rather than continuing to make monthly’…

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LONG-TERM Liabilities

plant assets, the purchase of another company, or refinancing an existing long-term obligation that is about to mature. Thus transactions involving long-term liabilities are relatively few in number but often involve large dollar amounts. In contrast, current liabilities usually arise from routine operating transactions. Many businesses regard long-term liabilities as an alternative to owners equity…

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Payroll Liabilities

The preparation of a payroll is a specialized accounting’ function beyond the scope of this text But we believe that every business student should have some understanding of the various costs ‘associated with payrolls. Every employer must compute, record, and pay a number of costs in addition to the wages and salaries owed to employees;…

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Current liabilities are obligations that must be paid within one year or within the operating cycle, whichever is longer. Another requirement for classification as a current liability is the expectation that the debt will be paid from current assets (or through the rendering of services). Liabilities that do not meet these conditions are classified as…

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When the Clinton admiral ration unveiled plans to offer “Nondenominational” bonds, some Wall Street wags likened.the proposal to p. meddling flood Inline. race In the Delbert Indeed, with the Federal Reveler having apparently Ingrain the Inflation beast, many parole law little need for the Luxuriance the bonds would provide against a Sharp luge In princely.…

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