Payables & accrued liabilities Flashcards
1
Q
How should short term debt that is expected to be refinance prior to the issuance of the Financial statements be classified?
A
Short term debt that was refinance should be classified as long term debt.
2
Q
How should the expense be recorded for deferred compensation arrangements that the service period is greater than one year?
A
When a deferred compensation arrangement is greater than one year, the consideration to be paid should be allocated evenly throughout period of service.
3
Q
How should ARO be recorded on the balance sheet
A
ARO are recorded at its discounted value and is expensed over the useful life of the asset.
-Debti Asset retirement cost
-Credit Asset retirement obligation
