A current liability is: An obligation that will be due within one year of the date of the company’s balance sheet, and Will require the use of a current asset or will create another current liability However, i
Thus, the amount recorded can differ from the amount actually paid during the year due to timing differences between interest payment date and interest accrual date. These differences also appear on the balance sheet as a current asset (prepaid interest) or a current liability (interest payable)....
B is correct. IFRS requires the effective interest method for the amortization of bond discounts/premiums. The bond is issued for 0.9228 ×€50 million = €46.140. Interest expense = Liability value × Market rate at issuance: 0.05 ×€46.140 = €2.307.反馈...
The balances in liability accounts are nearly always credit balances and will be reported on the balance sheet as either current liabilities or noncurrent (or long-term) liabilities. Related Questions What is the difference between an adjunct account and a contra account? What is a credit? Wh...
Supply Expense is a current liability. a. True. b. False. True or False: Accrued expenses have not been paid. An increase in an expense account is recorded as a debit to that expense account. a. True b. False An adjusting entry would adjust an expense account so...
The statute of limitations expires:if an unpaid AP remains outstanding for a legally determined period, in some cases, it may be written off. Can accounts payable be long-term liabilities? Accounts payable (AP) is typically classified as a current liability because it’s expected to be paid ...
A routine accrued liability is an expense that occurs regularly under the normal day-to-day operations of a company. They are also known as a recurring liability. Things such as loans, an accrued interest that is to be paid to a creditor for a financial obligation, are considered regular e...
Which of the following is not a current liability? a. Sales tax payable. b. Payroll taxes payable. c. Unearned revenues. d. Allowance for doubtful accounts. Current Liabilities: Current liabilities are used in calculati...
Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions Unemployment income reported on a 1099-G Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers) ...
A non-interest-bearing current liability (NIBCL) is an expense that must be paid in the short term but that is not accruing interest charges.