Intermediate Accounting For Dummies

Chapter 14

Tracking Current Liabilities and Contingencies

In This Chapter

Understanding how a company raises cash

Identifying current liabilities

Discovering short-term debt

Knowing when gain and loss contingencies are reportable

Walking through the current liability section of the balance sheet

Nobody likes debt, but it’s often an inevitable part of a company keeping its doors open for business. In this chapter, I cover current debt such as accounts payable, which is money a company owes its vendors for goods or services rendered. I also walk you through many other items of current liabilities that are necessary for the day-to-day operations of nearly any business.

You also read about gain and loss contingencies, events in the life of a business that haven’t yet happened and may never end up happening. Because they’re not always reportable items on financial statements, this chapter gives you the lowdown on when and how to include them.

Wondering about long-term debt? Check out Chapter ...