Balance Sheet: Reporting Liabilities

Course Description:

Liabilities represent an entity’s present obligations to transfer or provide economic benefits, facilitating daily operations, financing growth and investment, and establishing creditworthiness. Proper classification and recording of liabilities are crucial for accurately representing a company’s liquidity and solvency, as this practice informs stakeholders about its ability to manage daily operations and fulfill long-term financial commitments. This course provides a foundational understanding of liabilities to help you navigate common liability accounts under U.S. GAAP. It covers how these obligations are presented on the balance sheet and explains their crucial role in determining a company's financial health and stability, with specific examples to illustrate the application.

Learning Objectives:

Upon successful completion of this course, participants will be able to:

1. Recognize basic principles of reporting liabilities on the balance sheet
2. Identify classification and characteristics of liabilities
3. Recognize the appropriate rules to account for contingencies
4. Identify accounting procedures for accounts payable and deferred revenues
5. Recognize rules for the troubled debt and lessee accounting  
6. Recognize key financial metrics used to evaluate a company's ability to meet its financial obligations