ACC 131 Lecture Notes - Lecture 8: Reserve Requirement, Dont, Quick Ratio

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15 Nov 2016
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Acc 131 chapter 8 current and contingent liabilities. Liabilities are probable future sacrifices of economic benefit. Example: bp set aside money for lawsuits, havent been filed yet. This (cid:396)eall(cid:455) (cid:373)ea(cid:374)s that the (cid:858)(cid:858)i(cid:374)te(cid:396)est(cid:859)(cid:859) is i(cid:374)(cid:272)luded in the sales price because no business is going to truly provide 0% interest. Accounts payable: an account payable arises when a business purchases goods or services on credit. The debit would be to purchases, or inventory, and the credit would be to accounts payable: this is usually done every day when a purchase is made by a customer to the company, cell phone, rent payable, etc. Examples of accounts payable: accounts payable is generally a oral agreement, does not require a written agreement, accounts payable does not have interest. If december 31 falls on the tuesday before the friday payday, G(cid:396)ee(cid:374)(cid:859)s la(cid:374)ds(cid:272)api(cid:374)g (cid:373)ust a(cid:272)(cid:272)(cid:396)ue a lia(cid:271)ilit(cid:455) to its e(cid:373)plo(cid:455)ees.

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