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Current liabilities
Everything due within one yr. (A/P, unearned rev., N/P, sales tax pay)
Long-term liabilities
Opposite of current liabilities.
Short-term notes payable
Borrow money for a short-term & company convert A/P 2 not pay. To have more time to pay ; yet they have to pay extra (taxes or interest ?)
Interest expense formula
Notes payable X % X (Days divided 360)
Times Interest earned formula
Income before interest exp. & income taxes / Interest exp.
Payroll liabilities
Your salaries etc. are leveled on the employer (like taxes)
Employers are responsible for…
…Taxes (their own shares)
Internal control of payroll
For confidential & to avoid fraud