Payables and Accrued Liabilities

Free CPA FAR (Financial Accounting & Reporting) lesson in Select Balance Sheet Accounts. 17 min read, ~2,590 words.

AP and routine accruals (wages, vacation, bonuses, self-insurance) are recorded at the amount expected to be paid, with no discounting. AP cutoff follows transfer of control: FOB shipping point at shipment, FOB destination at delivery. Invoice date never controls. Compensated absences are accrued when rights vest or accumulate and payment...