Payables and Accrued Liabs

Question 1

Liability

Answer 1

present obligation to transfer assets or provide services, unavoidable and a result of a past transaction

Question 2

3 types of liabs

Answer 2

operating, financing, special liabs

Question 3

Operating Liabs

Answer 3

AP, Accrued Liabs, unearned rev, income taxes pay, warranty obligations

Question 4

Financing Liabs

Answer 4

Notes Payable, Bonds Payable (current

Question 5

Special Liabs

Answer 5

contngencies, of BS liabs and commitments

Question 6

Definite Liabs

Answer 6

exists at the BS date

Question 7

Contingent Liabs

Answer 7

are not certain on the BS date, dependent on a future event.

Question 8

Operating Cycle

Answer 8

period of time it takes entity to finish a product

Question 9

Compensated Absence accrual criteria

Answer 9

1. obligation is attributed to services rendered
2. the rights vest or accumulate
3. payment is probable
4. amount is estimable

Question 10

Vesting

Answer 10

employee has a right to the benefit

Question 11

Account Retirement Obligation will be accrued when

Answer 11

must be a legal obligation

Question 12

Contingent Liabs

Answer 12

lawsuits, warranties, rebates and premiums, coupon liabilities, guarantees of indebtedness

Question 13

Regular warranty

Answer 13

part of product cost assurance that product will function properly

Question 14

Extended Warranty

Answer 14

separate cost to customer and distinct performance obligation (revenue)

Question 15

Premiums

Answer 15

coupons, free gifts