ACTG 2011 Lecture Notes - Lecture 2: Gift Card, Air Miles, Payroll Tax
Document Summary
Things that an entity owes to others: could be cash, goods, services. Ifrs criteria: present obligation (i. e. not negotiable, result of past transactions or events, requires sacrifice of economic resources. Long term at their present value i. e. bonds. Common examples: bank indebtedness (i. e. revolving line of credit, short term loans, may be secured by a/r and/or inventory, current portion of long-term debt, reclassify portion due within one year as current, may impact certain ratios. Line of credit x amount of money that the bank will give someone (a range from 0 x) and you have the choice of taking the money or not. Often must be paid within 30/60 days, based on terms agreed with supplier. Common examples: unearned revenue, funds collected, goods/services not provided, original entry, dr cash, cr. Unearned revenue: once rendered, dr. unearned revenue, cr. Lecture 2 notes: dr. unearned revenue, cr.
