New Business Grants

What’s the definition liabilities represent keywords probable future sacrifice of economic benefits let me repeat these are the keywords probable future sacrifice of economic benefits this means that the company will lose money in the future a little exercise for you which of these are liabilities stop this presentation and try this exercise I’ll give you the answers once you are done so stop down are you done okay let’s start comments talk answers no it’s not a liability it’s part of equity we’ll come to that later interest payable I’ll give you a hint anytime you see the words payable it’s a liability it means you owe money to someone in the future so what’s the next one you got it.

Taxes payable it’s a liability what’s the next one I’m sure you got it now salary payable is a liability North payable is a liability account payable is a liability because you owe money in the future accrued bills accrued is an accounting term it means owing owing so these accrued means money owed for salaries bills such as utility and so on so anytime you see the word accrued it’s a liability.

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