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Payables and accrued liabilities

FAR Chapter 16 · Area II · Blueprint II.G

Liabilities that are left out make a company look healthier than it is, so the exam checks that you know when an obligation exists and how to measure it. The Blueprint asks you to calculate accounts payable and accrued liabilities, and to account for asset retirement obligations and for exit and disposal costs. Most questions turn on timing: has the obligation been incurred by the balance sheet date or not?

In this chapter

1. Accounts payable
2. Dividends payable
3. Accrued wages and payroll taxes
4. Vacation pay and bonuses
5. Self-insurance
6. Asset retirement obligations
7. Exit and disposal costs

This chapter has 7 lessons, 50 practice MCQs with explanations and 20 simulations, plus flashcards and a recall sheet.

What this chapter covers

• Accounts and dividends payable
• accrued wages, vacation and bonuses
• self-insurance
• asset retirement obligations
• exit and disposal costs

Chapter 15: Intangible assets · Chapter 17: Debt