” 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. The journal entry is usually as illustrated; Dr Cr Amount Stock a/c xx Accounts payable xx Then, this Accounts payable amount has to be put under Current Liabilities sub-section in the Balance Sheet. The other Current Liabilities are also credited with an increase and debited with a decrease. (principlesofaccounting.com, 2011) Estimated Liabilities are those liabilities for which payee is known as well as payment date, but they remain uncertain as concerns their payment amounts. These payment amounts can be estimated with reasonability, though. Uncertainty in the amounts may come about due to the fact that the amounts to be paid are based upon a given event the will occur in future or an amount which determination is not yet. Estimated Current Liabilities maybe with the inclusion of; vacation, bonus, warranty liabilities and health benefits. Any estimated liability is usually recorded for expected commodities in future to be provided in that future period. Whenever payments are met that estimated liability is usually reduced and to reflect the same in the Balance Sheet the equivalent account of estimated Current Liability in question is debited and the double entry is also reflected in the equivalent account. When a payment of an estimated current liability is made the journal entry is as follows (using health benefits as an example): Dr Cr Amount Health Benefit xx Cash/ Check xx (harpercollege.edu, 2008) Contingent Liabilities are liabilities that are connected with uncertain events. To this, the explanation given in any typical business is that some events are likely to eventually lead to a liability; however, the timing of such an event as well as the amount is not possible at present. Such liabilities are thus, referred to as Contingent Liabilities. Examples of Current Liabilities befitting this description are Legal disputes which are ongoing and which may cause a contingent liability to the business, environmental pollution that may call for the business to cover the cost in future, or other liabilities like commodity warranties. However, it should be noted
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…
Woolworths limited is a retailer whose primary activities are concentrated in supermarkets, especially regarding food and liquor, which represent the firm’s majority sales. Woolworth also deals with other businesses like consumer electronics and powerhouse business.
How does new technology help the Arts?Over the past three decades, we are witness to rapid developments and advancements in technology (Poole, 2011). It is changing the world’s perspective of various subjects in life. Creativity, for example, is being enhanced greatly through the vast number of technologies invented.
The consumption of fixed assets over time and their diminishing value are referred to as depreciation. This paper will evaluate different substantive procedures necessary to be carried out in examining the mobile construction equipment and related depreciation.
Computers, the fruit of technological revolution, had been related to mere calculations, word processing, banking, and science until the time the World Wide Web was invented. Surprisingly, with the spread of the Internet and innovative software, the boundaries between technology and art started blurring.
These help in strengthening the management of financing and avoid common mistakes like miscalculating or underestimating the cost.
Financing is of two types, equity financing and debt financing. When you are in need of money or looking for capital, company's debt-to-equity-ratio should be considered.
When looked in to deeply, depreciation on assets has a significant effect in the determination of the financial position of the company and the presentation of the statements for the information of the investors and general public. Depreciation is charged irrespective of the enhancement in the market value of the assets based on the cost and useful life of the assets concerned.