Question
A. Listed below are 12 accounting liabilities: 1. Insurance paid in advance 2. Interest payable 3. Unsettled lawsuits where a reasonable estimate of loss can
A. Listed below are 12 accounting liabilities:
1. | Insurance paid in advance |
2. | Interest payable |
3. | Unsettled lawsuits where a reasonable estimate of loss can be determined and the loss is probable |
4. | Accounts payable |
5. | Warranties payable |
6. | Bonds payable |
7. | Accrued liabilities |
8. | Taxes payable |
9. | Employment commitments |
10. | Notes payable |
11. | Purchase commitments |
12. | Salaries payable |
Place each of these accounting liabilities into one of the following six categories:
a. | Obligations with fixed payment dates and amounts |
b. | Obligations with fixed payment amounts but estimated payment dates |
c. | Obligations for which the firm must estimate both timing and amount of payment |
d. | Obligations arising from advances from customers on unexecuted contracts and agreements |
e. | Obligations under mutually executed contracts |
f. | Contingent obligations |
B. In addition, determine which of the liabilities would be recognized on the balance sheet as liabilities and which would not be recognized.
Suggestion: format your answer as follows (this is not a correct sample answer):
a. Obligations with fixed payment dates and amounts (not generally recognized):
1. Rent Payable
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