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Estimated warranty liability is generally classified as a current liability. This is because it represents the company's obligation to repair or replace products within a warranty period, which typically falls within one year. However, if the warranty period extends beyond one year, any portion of the liability that is expected to be settled after that period may be classified as a noncurrent liability.
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Is bonds payable a noncurrent liability?
no, it is current liability
Can a single liability cannot be divided between current and noncurrent liabilities.?
No, a single liability cannot be divided between current and noncurrent liabilities. Each liability is classified based on its due date: current liabilities are obligations due within one year, while noncurrent liabilities are those due beyond one year. Therefore, a liability must be fully categorized as either current or noncurrent, depending on its specific terms and repayment schedule.
3 When is a liability classified as a current liability ad as a noncurrent liability?
When liability is payable within one fiscal year then it is current liability while one liability is payable within more than one period then Is non-current liability.
Is bonds payable of 5000 issued at 99 dollars is it a current liability or noncurrent liability?
If this bond payable is payable within one fiscal year then it is current liability otherwise if it is not payable within one fiscal year then it is non current liability.
Is accounts receivable a current noncurrent liability?
it is current, if the account has not been paid and is past due after 30 days, it goes into collections. There is no such thing as a non-current accounts receivable.
Is bonds payable a noncurrent liability?
no, it is current liability
Can a single liability cannot be divided between current and noncurrent liabilities.?
No, a single liability cannot be divided between current and noncurrent liabilities. Each liability is classified based on its due date: current liabilities are obligations due within one year, while noncurrent liabilities are those due beyond one year. Therefore, a liability must be fully categorized as either current or noncurrent, depending on its specific terms and repayment schedule.
3 When is a liability classified as a current liability ad as a noncurrent liability?
When liability is payable within one fiscal year then it is current liability while one liability is payable within more than one period then Is non-current liability.
Is bonds payable of 5000 issued at 99 dollars is it a current liability or noncurrent liability?
If this bond payable is payable within one fiscal year then it is current liability otherwise if it is not payable within one fiscal year then it is non current liability.
Is accounts receivable a current noncurrent liability?
it is current, if the account has not been paid and is past due after 30 days, it goes into collections. There is no such thing as a non-current accounts receivable.
What is the deferred warranty if it is given for current year and future years?
A deferred warranty refers to a warranty obligation that a company recognizes as a liability on its balance sheet for products sold during the current year, while also accounting for future obligations related to those warranties. This means that the company sets aside a portion of its revenue to cover potential warranty claims that may arise not only in the current year but also in subsequent years. As such, the deferred warranty reflects the estimated costs associated with fulfilling warranty claims over the life of the warranty period. Properly accounting for this liability ensures that financial statements accurately represent the company's future financial obligations.
Is estimated tax payable a current liability?
Yes, as tax is paid normally in next fiscal year so it is current liability and shown under current liability section
Why are current and noncurrent liabilities stated separately?
If you are asking the differences between the two, it is pretty much straightforward. Current Liabilities are any liabilities that you owe and you can reasonably pay off in one-year or less (or one... Accrued liabilities are a current liability if they are due within one year.Contingent Liability is a current liability in most cases, but there is possibility for non-current contingent liability as well. As a individual taxpayer any thing that you own is a current personal asset. An individual taxpayer can also have some business assets to be counted you would add the value of all of those items and...
Is liability for withholding taxes a current or non current liability?
current liability
Are lease provisions a current liability or non current liability?
Non-current liability, all provisions are non current.
Is Demand loan a current liability or a long term liability?
a current liability
If payment on a current liability?
Payment On Current Liability Debit The Current Liability (say Sundry Creditor) (Liability Decreases) Credit Cash Or Bank (Current Asset Decreases)
