MGMT 30A Lecture Notes - Lecture 16: Payroll Tax, Accounts Payable, Promissory Note
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Document Summary
Management 30a lecture 16: reporting and analyzing liabilities. Understanding the business: the acquisition of assets and payments for goods and services is financed from two sources: debt (funds from creditors) and equity (funds from owners). : a debt that a company expects to pay from existing current assets: currently liability or through the creation of other current liabilities within one year of the operating cycle, whichever is longer. Include accounts payable, notes payable, unearned revenues and accrued liabilities such as taxes, salaries, and wages, and interest. To account for accrued expenses, use the accounts named accrued xx or xx payable . Accounts payable: represents future obligations to suppliers for goods and services purchased, credit extended to the company by a supplier. Notes payable: recorded when a company borrows money b, the company borrowing money usually will have to pay interest during each period prior. Involve a formal contract detailing repayment terms to full repayment.
