Business Administration 2257 Lecture Notes - Contingent Liability, Current Liability, Accounts Payable

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: Baldwin Wallace

Document Summary

*these capital assets are not depreciated or amortised: goodwill and land. * for 5 years residual is 1200. *120,000 for 5 years residual is 12,000. If straight line, depreciation is 21,600 and accumulated depreciation is 64,800. Current liability: expected it will be satisfied within 12 months, accounts payable, wages payable, unearned revenue, etc. That goes into current liabilities: current portion of long term debt this bit is the next 12 months. I. e. if you think you may be sued. Three characteristics of a liability: requires the sacrifice or use of resources, results from past transactions & economic events. Value and present value: exception current liabilities. Disclosure: segregated by main class or category, current and long-term liabilities. Time value of money: future value of a specified amount, present value of a specified amount, present value of an annuity, future value of an annuity.