Question

Short Answer #13 A. Listed below are 12 accounting liabilities: 1. Insurance paid in advance b. Interest payable Unsettled lawsuits where a reasonable estimate of loss and the loss is probable determined Accounts payable Warranties payable Bonds payable Accrued liabilities 8. Taxes payable Employment commitments 10. Notes payable 11. Purchase commitments 12. Salaries payable Place each of these accounting liabilities into one of the following six categories Obligations with fixed payment dates and amounts Obligations with fixed payment amounts but estimated payment dates Obligations for which the firm must estimate both timing and amount of payment obligations arising from advances from customers on unexecuted contracts and agreements Obligations under mutually executed contracts Contingent obligations B. In addition, determine which of the liabilities would be recognized on the balance she liabilities and which would not be recognized. Suprestion format your answer as follows(this is not a correct sample answer Obligations with fixed payment dates and amounts not generally recognized: 1. Rent Payable MacBook Pro

Answer 1

a)	Obligation with fixed payment dates and amounts
1	Interest payable
2	Accounts payable
b)	Obligation with fixed payment amounts but estimated payment dates
1	unsettled lawsuits where a reasonable estimate of loss can be determined and the loss is probable
c)	Obligation for which the firm must estimate both timing and amount of payment
1	Taxes payable
2	Accrued liabilities
d)	Obligation arising from advances from advances from customers on unexecuted contracts
1	Insurance paid in advance
e)	Obligation under mutually executed contracts
1	Bonds payable
f)	Contingent Obligations
1	Warranties payable
2	Employment commitments
3	Notes Payable
4	Purchase commitments

	Liabilities recognised in balance sheet
1	Obligation with fixed payment dates and amounts
2	Obligation with fixed payment amounts but estimated payment dates
3	Obligation for which the firm must estimate both timing and amount of payment
4	Obligation arising from advances from advances from customers on unexecuted contracts
5	Obligation under mutually executed contracts

-)Liabilities not recognised in balance sheet:

1)

Contingent Obligations