Cost Management

Analysis of Current and Contingent Liabilities

USD 10.00
instructor
Instructor
Alan Fata
Category
Strat. & Busn. Mngt
Difficulty
Easy
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Learning Objectives:
  1. Define a “liability” by listing its essential characteristics.
  2. Differentiate a current liability from a noncurrent liability.
  3. Explain the significance that current liabilities have for investors and creditors who are studying the prospects of an organization.
  4. Compute the current ratio.
  5. Indicate the appropriate timing for the recognition of a liability.
  6. Define and record “accrued liabilities.”
  7. Report the sale and redemption of gift cards.
  8. Account for gift cards that are not expected to be redeemed.
  9. Define a “commitment” and explain the method by which it is reported.
  10. Define a “contingency” and explain the method by which it is reported.
  11. Identify the criteria that establish the reporting of a contingent loss.
  12. Describe the appropriate accounting for those contingent losses that do not qualify for recognition at the present time.
  13. Explain the handling of a loss that ultimately proves to be different from the originally estimated and recorded balance.
  14. Provide the proper reporting rules for a contingency.
  15. Explain the difference between an embedded and an extended product warranty.
  16. Account for the liability and expense incurred by a company that provides its customers with an embedded warranty on a purchased product.
  17. Account for the amount received on the sale of an extended warranty and any subsequent cost incurred as a result of this warranty.
  18. Compute the average age of accounts payable.

Other course details:
  1. This is an introductory course that does not require any prerequisite.
  2. This course can be taken on a standalone basis.
  3. This course is chapter 13 in the book titled "Financial Accounting".
  4. It provides 2 PDU (Strategic & Business Management skill) towards your PMP professional development education.
Course Features
Credits:
2 PDU
Skill section:
Strategic & Business Management
Access:
Lifetime
Questions:
15