CPA - Payables and Accrued Liabilities

trade accounts payable

what payable uses gross method and records the purchase without regards to the discount

net method

recorded net of discount

purchase loss account

what account is used when a payment is made after a discount period

debited

what happens to the purchase discount account when the payment is made after the discount period

trade notes payable

formal, written promises to pay and may include stated interest rate

long term non current debt

what if a debt is both intent and has ability to refinance what is it classified as

payable account

where is sales tax payable credit to after collection and until remitted

asset retirement obligation

a legal obligation associated with the retirement of a tangible long-lived asset that results from the acquisition, construction or development, and/or normal operation of a long-lived asset, except for certain lease obligations

initial measurement

this is measured at fair value

subsequent measurement

what measurement inreases liability over passage of time

meets definition of a liability

when is ARO recognized?

initial or subsequent

measurements for asset retirement obligations

asset retirement cost

what is debited when recording asset retirement obligations

accretion expense

what kind of expense does subsequent measurement have

accretion expense + depreciation expense

what is the formula for Asset Retirement Obligation

undiscounted cash flows

upward revisions to what are considered "new" liabilities

downward revisions

this requires a removal of "old" liabilities

upward revisions

this uses current discount rate

historical (weighted average discount rate)

downward revisions use what kind of rate

sales revenue/(1+tax rate)

sales tax payable

discount on notes payable

what is credited to amortize a notes payable