Accounts payable refers to the outstanding bills a company must pay to suppliers and vendors. It is classified as a liability because it signifies a financial obligation that needs settlement. Unlike loans or long-term debts, accounts payable fall under short-term liabilities, meaning businesses must...
Examples of a Liability Examples of a liability include: accounts payable loans payable wages payable interest payable customer deposits deferred revenues Related Questions What is a contingent liability? What is the difference between a contingent liability and an estimated liability? Where is a cont...
A bicycle manufacturer may establish a warranty account to cover repair costs and returns, which is a liability, but it does not know when it will have to cover a warranty. Dividends payable is not an interest bearing account, because the company can delay paying dividends....
Notes Payable or Loans Payable Accrued Liabilities or Accrued Expenses Unearned Revenues or Customers’ Deposits Deferred Income Taxes 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...
Answer and Explanation: Note that we must identify the item that is NOT an accrued liability. Let us now discuss each alternative: a. Interest payable. Interest payable...Become a member and unlock all Study Answers Start today. Try it...
you on credit. It also includes the amount owed to banks and other lenders; and amounts owed for wages, interest, taxes. A liability account also includes amounts that customers have paid, including deposits and any taxes a business owes. Some of the most common liabilities accounts include:...
When a liability is interest-bearing, the passing in time will result in interest expenses When money is paid (or products delivered/services rendered), the liability is reduced Bonds Issuing a bond is a way for a company to raise funds. When the bond is issued, the firm receives money fr...
What type of account is Notes Payable? a. asset b. liability c. equity Receivables and Payables: In the accrual method, revenues and expenses are recorded when they occur separately from when cash is received or paid. To reflect the recognition of revenue or expenses, accountan...
The Company may sell, in such manner as the Board thinks fit, any shares on which the Company has a lien, but no sale shall be made unless some sum in respect of which the lien exists is presently payable or the liability or engagement in respect of which such lien existsis liabletobe...
Interest rate:Some accounts offer higher yields than others, which means a more significant return on your savings. Remember, however, that interest rates fluctuate over time. Deposit requirements:As with other savings accounts, many high-yield savings accounts require a minimum deposit, which could...