MGCR 211 Lecture Notes - Lecture 18: Inventory Turnover, Defined Contribution Plan, Weighted Arithmetic Mean
16 Nov 2016
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An obligation to transfer assets or provide services to other entities as a result of past transactions or events. Decision making: liabilities are important to investors, financial analysts, management and creditors. Obligations due within one year: either known or estimated amounts. Known cl"s: accounts payable, amounts owed to suppliers for goods or services purchased on account, not yet paid but billed, short-term notes payable. Results from expenses incurred but not yet paid (often not yet billed) i. salaries and wages payable ii. interest payable iii. income taxes payable iv. property taxes payable v. dividends payable: unearned revenue. Business receives cash before earning revenue: current portion of long-term liability. On feb 1 2007, hoffman company issued 75,000 of notes payable, of which 15,000 is due on. Feb 1st 2008 for each of the next five years. The balance sheet presentation on dec 31, 2007 is: Businesses that own property pay property taxes for each calendar year to municipal or provincial government.
