Chapter 10 – Liabilities. The following will be discussed in this chapter: Explain a current liability, and identify the major types of current liabilities, describe the accounting for notes payable, explain the accounting for other current liabilities, explain the financial statement presentation and analysis of current liabilities. | Preview of Chapter 1 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Preview of Chapter 10 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Learning Objectives After studying this chapter, you should be able to: [1] Explain a current liability, and identify the major types of current liabilities. [2] Describe the accounting for notes payable. [3] Explain the accounting for other current liabilities. [4] Explain why bonds are issued, and identify the types of bonds. [5] Prepare the entries for the issuance of bonds and interest expense. [6] Describe the entries when bonds are redeemed or converted. [7] Describe the accounting for long-term notes payable. [8] Identify the methods for the presentation and analysis of long-term liabilities. 10 Liabilities A current liability is debt that a company expects to pay within one year or the operating cycle, whichever is longer. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued liabilities such as taxes payable, salaries and wages payable, and interest payable. Current Liabilities LO 1 To be classified as a current liability, a debt must be expected to be paid within: one year. the operating cycle. 2 years. (a) or (b), whichever is longer Question Current Liabilities LO 1 Learning Objectives After studying this chapter, you should be able to: [1] Explain a current liability, and identify the major types of current liabilities. [2] Describe the accounting for notes payable. [3] Explain the accounting for other current liabilities. [4] Explain why bonds are issued, and identify the types of bonds. [5] Prepare the entries for the issuance of bonds and interest expense. [6] Describe the entries when bonds are redeemed or converted. [7] Describe the accounting for long-term notes payable. [8] Identify the methods for the presentation and analysis of long-term liabilities. 10 Liabilities Notes Payable Written promissory note. Frequently issued to meet short-term financing . | Preview of Chapter 1 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Preview of Chapter 10 Financial Accounting Ninth Edition Weygandt Kimmel Kieso Learning Objectives After studying this chapter, you should be able to: [1] Explain a current liability, and identify the major types of current liabilities. [2] Describe the accounting for notes payable. [3] Explain the accounting for other current liabilities. [4] Explain why bonds are issued, and identify the types of bonds. [5] Prepare the entries for the issuance of bonds and interest expense. [6] Describe the entries when bonds are redeemed or converted. [7] Describe the accounting for long-term notes payable. [8] Identify the methods for the presentation and analysis of long-term liabilities. 10 Liabilities A current liability is debt that a company expects to pay within one year or the operating cycle, whichever is longer. Current liabilities include notes payable, accounts payable, unearned revenues, and accrued .
