A liability is an existing debt or obligation of a company. It is an amount owed to a third‐party creditor that requires something of value, usually cash, to be transferred to the creditor to settle the debt. Most obligations are known amounts based on invoices and contracts; some liabilities are estimated because the value that changes hands is not fixed at the time of the initial transaction. Liabilities are reported in the balance sheet as current (short‐term) or long‐term, based on when they are due to be paid. Current liabilities are those obligations that will be paid within the next year.
Accounting Principles II
- Current Liabilities
- Long-Term Liabilities
- Partnerships
- Corporations
- Investments
- Statement of Cash Flows
- Financial Statement Analysis
- Managerial and Cost Accounting Concepts
- Traditional Cost Systems
- Activity-Based Costing
- Cost-Volume-Profit Relationships
- Budgets
- Flexible Budgets and Standard Costs
- Incremental Analysis
- Capital Budgeting
- Liability Defined
- Accounts Payable
- Payroll Liabilities
- Understanding Notes Payable
- Long‐Term Liabilities Defined
- Notes Payable
- Mortgage Payable
- Lease Obligations
- Bonds Payable
- Deferred Income Taxes
- Characteristics of a Partnership
- Partnership Accounting
- Changes in Partners
- Liquidation of a Partnership
- The Statement of Partners' Capital
- Characteristics of a Corporation
- Stock Terminology
- Accounting for Stock Transactions
- Dividends
- Stock Splits
- The Balance Sheet: Stockholders' Equity
- Income Statement
- Introduction to Investments
- Accounting for Debt Securities
- Accounting for Equity Securities
- Balance Sheet: Classification, Valuation
- Statement Sections
- Preparing the Statement
- Preparing the Statement: Direct Method
- Preparing the Statement: Indirect Method
- Using the Statement Information
- Need for Financial Statement Analysis
- Trend Analysis
- Common‐Size Analysis
- Ratio Analysis
- Financial Statement Analysis Limitations
- Managerial versus Financial Accounting
- Manufacturing Financial Statements
- Costing Terminology
- The Cost of Goods Manufactured Schedule
- Accounting by Manufacturing Companies
- Job Order Cost System
- Process Cost System
- Activity-Based Costing Activities
- Activity-Based vs Traditional Costing
- Cost Behavior
- Cost-Volume-Profit Analysis
- Margin of Safety
- Sensitivity Analysis
- Introduction to Budgets
- Operating Budgets
- Capital Expenditures Budget
- Cash Budget
- Budgeted Income Statement
- Budgeted Balance Sheet
- Merchandising Company Budgets
- Flexible Budgets
- Standard Costs
- Introduction to Incremental Analysis
- Examples of Incremental Analysis
- Capital Budgeting Techniques
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