ppt07-Liabilities-会计英语(第四版)-教学课件

YESUNAccountingEnglish1Lesson7LiabilitiesYESUNAccountingEnglish2TheNatureofLiabilitiesI.O.U.Definedasdebtsorobligationsarisingfrompasttransactionsorevents.Maturity=1yearorlessMaturity1yearCurrentLiabilitiesNoncurrentLiabilitiesYESUNAccountingEnglish3DistinctionBetweenDebtandEquityTheacquisitionofassetsisfinancedfromtwosources:Fundsfromcreditors,withadefiniteduedate,andsometimesbearinginterest.FundsfromownersDEBTEQUITYYESUNAccountingEnglish6NotesPayablePROMISSORYNOTELocationDateafterthisdatepromisestopaytotheorderofthesumofwithinterestattherateofperannum.signedtitleMiami,FlNov.1,1999SixmonthsPorterCompanyJohnCaldwellSecurityNationalBank$10,000.0012.0%treasurerYESUNAccountingEnglish7NotesPayableOnNovember1,1999,PorterCompanywouldmakethefollowingentry.DateDescriptionDebitCredit1-NovCash10,000NotePayable10,000YESUNAccountingEnglish8Interestexpenseisthecompensationtothelenderforgivinguptheuseofmoneyforaperiodoftime.Theliabilityiscalledinterestpayable.Tothelender,interestisarevenue.Totheborrower,interestisanexpense.InterestRateUp!InterestPayableYESUNAccountingEnglish9WhatentrywouldPorterCompanymakeonDecember31,thefiscalyear-end?InterestPayableExampleDateDescriptionDebitCreditYESUNAccountingEnglish10InterestPayableExampleOnDecember31,PorterCompanywouldrecordinterestpayablewiththefollowingentry:$10,000´12%´2/12=$200DateDescriptionDebitCredit31-DecInterestExpense200InterestPayable200YESUNAccountingEnglish11PayrollLiabilitiesEmployersincurseveralexpensesandliabilitiesfromhavingemployees.YESUNAccountingEnglish12PersonalincomeTaxesHousingfundUnemploymentInsurance,etc.VoluntaryDeductionsNetPayGrossPayPayrollLiabilitiesYESUNAccountingEnglish13Earnedrevenueisrecorded.Astheearningsprocessiscompleted...Deferredrevenueisrecorded.Cashisreceivedinadvance.UnearnedRevenueCashissometimescollectedfromthecustomerbeforetherevenueisactuallyearned.YESUNAccountingEnglish14DeferredIncomeTaxesCorporationspayincometaxesfollowingtaxlaw.YESUNAccountingEnglish15Thedifferencebetweentaxexpenseandtaxpayableisrecordedinanaccountcalleddeferredtaxes.Thetaxlawisthesetofrulesforpreparingtaxreturns.Financialstatementincometaxexpense.incometaxespayable.GAAPisthesetofrulesforpreparingfinancialstatements.Resultsin...Resultsin...Usually...DeferredIncomeTaxesYESUNAccountingEnglish16ExaminetheDecember31,1998informationforX-OffInc.X-Offusesstraight-linedepreciationforfinancialreportingandaccelerateddepreciationforincometaxreporting.X-Off’staxrateis30%.Revenues1,000,000$DepreciationExpense:Straight-line200,000Accelerated320,000OtherExpenses650,000DeferredIncomeTaxesExampleYESUNAccountingEnglish17IncomeTaxStatementReturnDifferenceRevenues1,000,000$Less:Depreciation200,000Otherexpenses650,000Incomebeforetaxes150,000$?Taxrate30%Incometaxes45,000$Theincometaxamountcomputedbasedonfinancialstatementincomeisincometaxexpensefortheperiod.DeferredIncomeTaxesExampleComputeX-Off’sincometaxexpenseandincometaxpayable.YESUNAccountingEnglish18ComputeX-Off’sincometaxexpenseandincometaxpayable.IncomeTaxStatementReturnDifferenceRevenues1,000,000$1,000,000$Less:Depreciation200,000320,000Otherexpenses650,000650,000Incomebeforetaxes150,000$30,000$?Taxrate30%30%Incometaxes45,000$9,000$Incometaxesbasedontaxreturnincomearethetaxespayablefortheperiod.DeferredIncomeTaxesExampleYESUNAccountingEnglish19IncomeTaxStatementReturnDifferenceRevenues1,000,000$1,000,000$-$Less:Depreciation200,000320,000(120,000)Otherexpenses650,000650,000-Incomebeforetaxes150,000$30,000$120,000$?Taxrate30%30%30%Incometaxes45,000$9,000$36,000$Thedeferredtaxfortheperiodof$36,000isthedifferencebetweenincometaxexpenseof$45,000andincometaxpayableof$9,000.DeferredIncomeTaxesExampleYESUNAccountingEnglish20Anexistingcondition,situation,orsetofcircumstancesinvolvinguncertaintyastopossibleasset(contingentasset)orliability(contingentliability)thatwillultimatelyberesolvedwhenoneormorefutureeventsoccurorwhensucheventoreventsfailtooccur.Contingency:DefinedYESUNAccountingEnglish21Contingentassetsareclaimsorrightstoreceiveassets,whichmaybecomevalideventually.Examplesare:PendinglitigationwhoseprobableoutcomeisfavorablePossibletaxrefundsintaxdisputesContingentassetsarenotaccrued!ContingentassetsYESUNAccountingEnglish22Contingentliabilityinvolvesituationsofpossiblelossthataredependentonsomefutureevent(s).Thelikelihoodofoccurrenceoftheeventmaybe:1.Remote(slight)2.Reasonablypossible(morethanremotebutlessthanlikely)3.Probable(likely)Contingentliability:GeneralYESUNAccountingEnglish23Estimatedlossesfromcontingentliabilityareaccruedasliabilitiesif:1.Itisprobablethataliabilityhasbeenincurred,and2.Theamountoflosscanbereasonablyestimated.Theinterpretationofthesetermsisoftenbasedonlawyers’opinions.Contingentliability:AccrualYESUNAccountingEnglish24Todeterminewhetheraliabilityshouldberecorded,evaluate:1.Thetimeperiodinwhichtheunderlyingcauseofactionoccurred2.Theprobabilityofanunfavorableoutcome3.TheabilitytomakeareasonableestimateoflossTodeterminetheprobabilityofoutcome,evaluate:1.Natureoflitigationandprogressofcase2.Opinionoflegal