Accounting for Current Liabilities

Flashcards about Liabilities

Due within one year or the company’s operating cycle if longer

__ Liabilities

Due after one year or the company’s operating cycle if longer

__ Liabilities

Examples of employee __

Charitable giving, medical and life insurance premiums, pension contributions, and union dues

Employer __

FICA–Social Security Taxes, FICA–Medicare Taxes, Federal and State Unemployment Taxes

Employee hiring __

Authorize, hire, and fire

Payroll __ Duty

Verify tax rates and payroll amounts

__ Duty

Track and verify time worked

Payroll __ Duty

Sign and issue prenumbered checks

Multi-Period Known __ include

Unearned Revenues and Notes Payable

Examples of __ Liabilities

Pensions, health care, vacation pay, and warranties

Warranty __

Seller’s obligation to replace or fix a product (or service) that fails to perform as expected within a specified period

Potential __ Claims

A potential claim is recorded if the amount can be reasonably estimated and payment for damages is probable

Debt __

If it is probable that the debtor will default, the guarantor reports the guarantee as a liability

Other __

Include environmental damages, possible tax assessments, insurance losses, and government investigations

Times __ earned

If income before interest and taxes varies greatly from year to year, fixed interest charges can increase the risk that an owner will not earn a positive return and be unable to pay interest charges.

The components of payroll __ include

IRS form 941 IRS form 940, and W2

The components of payroll __ include

Payroll register, payroll checks, and employee earnings report