 |  Accounting: What the Numbers Mean, 5/e David H. Marshall,
Millikin University
Wayne W. McManus,
International College of the Cayman Islands
Daniel F. Viele,
Webster University
Accounting for and Presentation of Liabilities
Chapter 7 Learning ObjectivesAfter studying this chapter, you should understand:
1.The financial statement presentation of short-term debt and current maturities of long-term debt. |
| | | 2.The difference between interest calculated on a straight basis and on a discount basis. |
| | | 3.What unearned revenues are and how they are presented in the balance sheet. |
| | | 4.The accounting for an employer's liability for payroll and payroll taxes. |
| | | 5.The importance of making estimates for certain accrued liabilities and how these items are presented in the balance sheet. |
| | | 6.What leverage is and how it is provided by long-term debt. |
| | | 7.The different characteristics of a bond, which is the formal document representing most long-term debt. |
| | | 8.Why bond discount or premium arises and how it is accounted for. |
| | | 9.What deferred income taxes are and why they arise. |
| | | 10.What minority interest is, why it arises, and what it means in the balance sheet |
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2002 McGraw-Hill Higher Education