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How does depreciation accounting help the firm manage equipment investment costs and taxes?
Finance & Accounting
Pages 4 (1004 words)
Running Head: CURRENT LIABILITIES Name: Tutor: Course: Date: University: The expression Current Liabilities describes those obligations that any given company has and that it expects to cover using the available Current Assets. These Current Liabilities can also be met by the creation of other Current Obligations with an annum or the business’ normal operating cycle depending upon which of them is longer.
” More so, the question which contains a series of sub-questions will be answered in the order in which these sub-questions have been asked. Current Liabilities usually form a sub-section of the Balance sheet. Typical Current Liabilities of known amounts may include accounts payable, short-term loans, outstanding salaries or other operating expenses that are still outstanding. Accounts payable refer to the amounts that ought to be paid to suppliers for merchandise bought from them in credit terms. Short-term loans are those types of loans that are usually repayable in a time period of less than a year. Outstanding expenses are those expenses that have already been incurred in the business in their day-to-day operations and which are yet to be met but have are already due. For an illustration of how Current Liabilities of known amounts are treated in the accounts, Accounts payable will be used. Whenever accounts payable increase in the business, the accounts payable ledger account is usually credited with the increase while the goods or stock account is debited with a similar amount. ...
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