We can label taxes in ways other than direct and indirect. While ”objective” taxes like VAT don’t consider taxpayers’ circumstances, “subjective” taxes like income tax take into account such aspects as number of children, age and marital status. Another way to tell them apart is by how...
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...
What are mixed costs in accounting? What is a loan receivable account? How do you record a bad debt expense? What does provision for income taxes mean? What are accruals in accounts payable? What is included in long-term debt in accounting?
Cash interest = Interest expense – increase or + decrease in interest payable + amortization of bond premium or – discount Taxes cash flow: Income tax refund received and income tax paid (sales tax received and paid should be equivalent) Cash for income taxes = Income taxes + decrease or...
Accounts payable: $46,000 Accrued expenses: $19,000 Taxes payable: $14,000 Total Current Liabilities: $100,000 In the above example, everything but accounts payable are accrued expenses. Often, accrued expenses must be estimated. What Is the Difference Between Accrued Expenses and Accounts Paya...
Income taxes payable Interest payable Other accrued expenses payable Deferred revenues and customer deposits Related Questions What is the current ratio? Why do you separate current liabilities from long-term liabilities? What is the difference between the current ratio and the quick ratio? Are bo...
Interest payable on loans:Debt today can drain tomorrow’s opportunities. Interest payable and the principal of loans due within a year are crucial considerations for working capital. Taxes payable:This can include income tax, sales tax, property tax, or payroll taxes. ...
For example, if a merchant sells an item for $100 and the item is subject to a 5% sales tax, the merchant will debit Cash for $105 and will credit Sales for $100 and will credit Sales Tax Payable for $5. Sales Tax Payable is a liability account. When the sales taxes are remitted...
Understanding Income Tax Payable Generally, the taxes an organization owes are included in the line "income tax payable" on the organization’s balance sheet. Income tax payable is shown as a current liability to the extent of the amount that will be resolved (i.e., paid) within 12 months...
Some examples of current liabilities that appear on the balance sheet include accounts payable, payroll due, payroll taxes, accrued expenses, short-term notes payable, income taxes, interest payable, accrued interest, utilities, rental fees, and other short-term debts. Why Are Current Liabilities Im...