10

Liabilities

Learning Goals

Describe and illustrate current liabilities related to

accounts payable, notes payable, and payroll transactions.

Describe the characteristics of long-term liabilities and

apply present value concepts to bonds payable.

Describe and illustrate deferred liabilities related to

deferred revenue and deferred taxes.

Identify the characteristics of contingent liabilities.

Illustrate the reporting of liabilities on the balance sheet.

Analyze and interpret liquidity using the current ratio,

quick ratio, number of times interest charges earned,

and ratio of total liabilities to total assets.

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