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A transaction that is likely to cause an increase in a current liability is?
The purchase of anything on CREDIT, as long as that account is to be paid off within 1 year (or one accounting period) A current liability is anything a company owes that is reasonably expected to be paid off within one year or one accounting period.
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
An accounting time period that is one year in length but does not begin on January 1 is referred to as?
a fiscal year
Is interest payable a long term liability or current liability?
A payable (such as interest payable) can be either a long term or current liability, to find out which consider the definitions of each. Current liability is any liability that will be fully paid within one year (or less) or one accounting period. Long term liability is any liability that will take more than one year or accounting period to be fully paid. For the most part, interest payable is current, as it usually is required to be paid quickly, however, that is not always the case.
Is unearned revenue a current or a long liabilities?
Unearned revenue is generally considered a current liability. The only time it would be a long term liability would be if the company does not reasonably expect to "earn" the revenue withing one year or less or one accounting period.
A transaction that is likely to cause an increase in a current liability is?
The purchase of anything on CREDIT, as long as that account is to be paid off within 1 year (or one accounting period) A current liability is anything a company owes that is reasonably expected to be paid off within one year or one accounting period.
What is time interval concept?
In Accounting, also known as the Accounting Period Concept. Where business operation can be divided into specific period of time such as a month, a quarter or a year(accounting period) Final accounts are prepared at the end of the accounting period ie one year. Internal accounts can be prepared monthly, quarterly or half yearly.
An accounting time period that is one year in length but does not begin on January 1 is referred to as?
a fiscal year
Is interest payable a long term liability or current liability?
A payable (such as interest payable) can be either a long term or current liability, to find out which consider the definitions of each. Current liability is any liability that will be fully paid within one year (or less) or one accounting period. Long term liability is any liability that will take more than one year or accounting period to be fully paid. For the most part, interest payable is current, as it usually is required to be paid quickly, however, that is not always the case.
How many years are in one century?
3,155,760,000... accounting for leap year that one year is 365.25 days long
What is long term finance?
Long term finance simply means money that is set aside for achieving goals that may take a long period of time. An example of long term finance may be retirement savings.
Is unearned revenue a current or a long liabilities?
Unearned revenue is generally considered a current liability. The only time it would be a long term liability would be if the company does not reasonably expect to "earn" the revenue withing one year or less or one accounting period.
Which is a current liability account?
Any liability the company reasonably expects to have paid in full in one year or less (or one accounting period) is a current liability.
Is current account a liability?
Any liability the company reasonably expects to have paid in full in one year or less (or one accounting period) is a current liability.
What is considered a long term lease?
In Accounting, long-term typically refers to anything longer than one year. This includes leases.
Where can one find accounting software by MYOB?
One can find accounting software by MYOB from the official MYOB website which offers deals on the accounting software. There is also a trial period which the website offers for testing its accounting software.
What is the difference between accruals and prepaid?
Accounts are drawn up over an accounting period - usually a year. An accrual is a payment physically paid in one period but referring to the previous one. A prepayment is a payment physically paid in one period but referring to the next one. Let's suppose that your accounting period ends on 31st May. You get a bill for coconuts that were supplied in May, but you don't pay it until June - that is an accrual. You pay for bananas in May but they are not supplied until June - that is a prepayment.
