Presented below is the current liabilities section of Micro Corporation.
Instructions Answer the following questions. a. What are the essential characteristics that make an item a liability? b. How does one distinguish between a current liability and a long-term liability? c. What are accrued liabilities? Give three examples of accrued liabilities that Micro might have. d. What is the theoretically correct way to value liabilities? How are current liabilities usually valued? e. Why are notes payable reported first in the current liabilities section? f. What might be the items that comprise Microâs liability for âCompensation to employeesâ?
($000) 2018 2017 Current liabilities Notes payable Accounts payable Compensation to employees Accrued liabilities Income taxes payable Current maturities of long-term debt $ 68,713 179,496 60,312 158,198 10,486 16,592 $ 7,700 101,379 31,649 77,621 26,491 6,649 Total current liabilities $493,797 $251,489