Pengantar Akuntansi II - Liabilities (Part I)

Summary

In this session, Margaretha Devi from Harapan Bangsa Business School discusses the basics of liabilities, focusing on current liabilities (short-term debts) and non-current liabilities (long-term debts). The lecture explains various types of short-term liabilities, such as accounts payable, notes payable, and taxes payable, along with how they are recorded in financial statements. Additionally, the session touches on bonds, including their types (secured, unsecured, convertible) and the process of issuing them. The aim is to help students understand liabilities and their role in financial reporting, with practical examples of accounting entries.

Takeaways

• 😀 Liability refers to obligations that must be settled by a company due to past events, requiring the sacrifice of company resources.
• 😀 There are two types of liabilities: current liabilities (short-term debts) and non-current liabilities (long-term debts).
• 😀 Current liabilities are debts that must be settled within one year or one operating cycle, whichever is longer.
• 😀 Examples of current liabilities include notes payable, accounts payable, and sales tax payable.
• 😀 Notes payable are written obligations between a lender and a borrower, specifying the debt amount, interest rate, and due date.
• 😀 Accounts payable are short-term debts not documented in writing, often involving smaller amounts with potential early payment discounts.
• 😀 Unearned revenue is a liability where a company receives payment before delivering goods or services, and the liability is settled when the company fulfills its obligations.
• 😀 Sales tax payable arises from sales transactions where the company collects tax from customers and later remits it to the government.
• 😀 Interest payable represents interest that a company owes but has not yet paid, typically recorded as an accrued liability.
• 😀 Non-current liabilities include long-term debts, such as bonds and loans, that are due more than one year from the reporting date.
• 😀 Bonds issued by companies can either be secured (backed by assets) or unsecured, and can come in various types such as convertible bonds or callable bonds.

Q & A

What are liabilities in accounting?

Liabilities are financial obligations or debts a company must settle as a result of past events. These are typically settled by transferring company assets or providing services.

What is the difference between short-term and long-term liabilities?

Short-term liabilities (current liabilities) are obligations due within one year, while long-term liabilities (non-current liabilities) are due after more than one year.

Can you provide examples of short-term liabilities?

Examples of short-term liabilities include Notes Payable, Accounts Payable, Unearned Revenue, Sales Tax Payable, Wages Payable, and Interest Payable.

What is the significance of Notes Payable?

Notes Payable are written agreements where a company agrees to repay borrowed money, typically with interest, at a specified time. This is a formal liability.

What does Unearned Revenue represent?

Unearned Revenue refers to payments a company receives in advance for goods or services that have not yet been provided. It is recorded as a liability until the goods or services are delivered.

How is the concept of Sales Tax Payable relevant in accounting?

Sales Tax Payable refers to the sales tax collected from customers by the company, which is owed to the government. It is considered a liability until paid.

What is the role of Bonds Payable in long-term liabilities?

Bonds Payable are a form of long-term liability where a company borrows funds by issuing bonds to investors. These bonds have specific terms and interest payments.

What are the different types of bonds mentioned in the script?

The types of bonds include Secured Bonds (backed by assets), Unsecured Bonds (not backed by assets), Convertible Bonds (which can be converted into stock), and Callable Bonds (which can be redeemed early by the company).

What is the advantage of issuing bonds over stock for a company?

Issuing bonds allows a company to raise capital without diluting ownership or giving up control, unlike issuing stock, which can reduce the control of existing shareholders.

How does the decision to issue bonds affect a company’s financial structure?

Issuing bonds increases a company’s liabilities but does not affect ownership structure. It can be a more tax-efficient option since bond interest is tax-deductible. However, it also increases the financial risk due to fixed interest payments.