Cost Management
Analysis of Current and Contingent Liabilities
USD 10.00
Learning Objectives:
- Define a “liability” by listing its essential characteristics.
- Differentiate a current liability from a noncurrent liability.
- Explain the significance that current liabilities have for investors and creditors who are studying the prospects of an organization.
- Compute the current ratio.
- Indicate the appropriate timing for the recognition of a liability.
- Define and record “accrued liabilities.”
- Report the sale and redemption of gift cards.
- Account for gift cards that are not expected to be redeemed.
- Define a “commitment” and explain the method by which it is reported.
- Define a “contingency” and explain the method by which it is reported.
- Identify the criteria that establish the reporting of a contingent loss.
- Describe the appropriate accounting for those contingent losses that do not qualify for recognition at the present time.
- Explain the handling of a loss that ultimately proves to be different from the originally estimated and recorded balance.
- Provide the proper reporting rules for a contingency.
- Explain the difference between an embedded and an extended product warranty.
- Account for the liability and expense incurred by a company that provides its customers with an embedded warranty on a purchased product.
- Account for the amount received on the sale of an extended warranty and any subsequent cost incurred as a result of this warranty.
- Compute the average age of accounts payable.
Other course details:
- This is an introductory course that does not require any prerequisite.
- This course can be taken on a standalone basis.
- This course is chapter 13 in the book titled "Financial Accounting".
- 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