9
Chapter
9
Reporting
and
interpreting
Liabilities
PowerPoint Authors:
Susan Coomer Galbreath, Ph.D., CPA
Charles W Caldwell, D.B.A., CMA
Jon A. Booker, Ph.D., CPA, CIA
Cynthia J. Rooney, Ph.D., CPA
McGraw­Hill/Irwin
Copyright © 2014 by The McGraw­Hill Companies, Inc. All rights reserved.-1
Liabilities
Defined
and
Classified
Defined
as
probable
debts
or
obligations
of
the
entity
that
result
from
past
transactions,
which
will
be
paid
with
assets
or
services.
Maturity
=
1
year
or
less
Maturity
>
1
year
Current
Noncurrent
Liabilities
Liabilities
9-2
Liquidity
Liquidity
is
the
ability
to
pay
current
obligations.
Working
capital
is
a
Working Capital
margin
of
safety
that
ensures
a
Current
Assets
company
can
meet
Current
Liabilities
its
short-term
obligations.
9-3