中级财务会计英文版第八章课后题答案.docVIP

Chapter 13 Current Liabilities and Contingencies Questions for Review of Key Topics Question 13-1 A liability entails the present, the future, and the past. It is a present responsibility, to sacrifice assets in the future, caused by a transaction or other event that already has happened. Specifically, “Elements of Financial Statements,” Statement of Financial Accounting Concepts No. 6, par. 36, describes three essential characteristics: Liabilities– 1. are probable, future sacrifices of economic benefits 2. that arise from present obligations (to transfer goods or provide services) to other entities 3. that result from past transactions or events. Question 13-2 Liabilities traditionally are classified as either current liabilities or long-term liabilities in a classified balance sheet. Current liabilities are those expected to be satisfied with current assets or by the creation of other current liabilities. Usually, but with exceptions, current liabilities are obligations payable within one year or within the firms operating cycle, whichever is longer. Question 13-3 In concept, liabilities should be reported at their present values; that is, the valuation amount is the present value of all future cash payments resulting from the debt, usually principal and/or interest payments. In this case, the amount would be determined as the present value of $100,000, discounted for three months at an appropriate rate of interest for a debt of this type. This is proper because of the time value of money. In practice, liabilities ordinarily are reported at their maturity amounts if payable within one year because the relatively short time period makes the interest or time value component immaterial. [FASB ASC 835-30-15-3: Interest – Imputation of Interest – Scope and Scope Exceptions (previously “Interest on Receivables and Payables,” Accounting Principles Board Opinion No 21, (New York, AICPA, August 1971, Par. 3))] specifically exempts from present value valuatio