Liabilities - Current

4 important questions on Liabilities - Current

When is interest recorded for a note payable?

It is accrued at the end of the period, or expensed upon payment.  It is not recorded when the note is first journalized.

Four major payroll related liabilities that must be accrued with each payroll, or at period's end:

Social security and medicare taxes
Unemployment insurance
Workers' comp
Insurance and pension benefits

What does workers' comp cover?

Job-related injury
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It is important to distinguish between the employer's payroll related taxes, and ____

Taxes withheld on behalf the the employee.

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