About This Chapter
Accounting for Compensation, Taxes & Liabilities - Chapter Summary and Learning Objectives
At its core, accounting is about monitoring the money coming in and out of the business, but accounting is also about making projections to determine whether a business can financially stand its ground. To do so, accountants must understand the different variables that may affect a business, such as employee compensation, taxes, and liabilities. The lessons in this chapter provide extended outlines of each of these concepts, so by the end of the chapter you should understand significant details about the following:
- How bonuses, leave, and payroll affect accounting
- Sales commission calculations
- Estimating different types of taxes
- Planning for long-term and current liabilities
- The differences between known and estimated liabilities
- Contingency plans and environmental liabilities
- Compensating for unpaid debts
|Accounting for Employee Compensation: Payroll, Leave & Bonuses||Break down the different types of compensation and analyze the effects of compensation on book-keeping.|
|How to Calculate Sales Commissions||Explain the three different kinds of sales commissions.|
|How to Account for Sales, Property & Income Taxes||Compare these three types of taxes.|
|Current & Long-Term Liabilities: Definition & Characteristics||Point out which type of financial statement provides liability details, then differentiate between long-term and current liabilities.|
|Estimated Liabilities: Definition & Types||Summarize property taxes, warranties, and retirement, then establish techniques for making amounts-owed estimations.|
|Known Liabilities: Definition & Types||Of the known liabilities, provide definitions for the main three types and point out where these liabilities are mentioned on financial statements.|
|Accounting for Long-Term Liabilities||Appraise the four kinds of long-term liabilities and deduce how to calculate and plan for these liabilities.|
|Accounting for Contingencies & Environmental Liabilities||Consider unexpected events that may occur in business, outline to construct contingency plans, and correlate related liabilities.|
|Uncollectable Accounts, the Allowance Method & Bad Debt||Weigh methodologies for handling uncollectible accounts, then survey steps toward making allowances for these unpaid debts.|
1. Accounting for Employee Compensation: Payroll, Leave & Bonuses
Compensating your employees is a major part of making sure that your business operates efficiently. But what, exactly, is covered under the term 'compensation'? And how do the various aspects affect bookkeeping? Watch this lesson for answers.
2. How to Calculate Sales Commissions
In this lesson, we'll define sales commission. We'll also discuss three types of sales commission: percent of sales, stair step and fixed amount. You'll also learn when to utilize each type.
3. How to Account for Sales, Property & Income Taxes
Taxes are a certainty, for businesses as well as for individuals. In this lesson, we'll examine accounting principles for three common taxes that businesses encounter: sales tax, property tax, and income tax.
4. Current & Long-Term Liabilities: Definition & Characteristics
In this lesson, we'll define 'liabilities.' You'll also learn the difference between current and long-term liability. Finally, we'll discuss on which financial statement you'll find liabilities and provide examples of each type.
5. Estimated Liabilities: Definition & Types
In this lesson, you'll learn about estimated liabilities. We'll discuss three types of estimated liabilities: retirement, warranties and property taxes. We'll also explore suggestions on how to estimate the amount owed.
6. Known Liabilities: Definition & Types
In this lesson, you'll learn about known liabilities. We'll discuss three types of known liabilities: liabilities by agreement, liabilities by contract, and liabilities by law. You'll also learn which financial statement these liabilities are listed on.
7. Accounting for Long-Term Liabilities
In this lesson, we'll define long-term liabilities and discuss four examples: bonds, pensions, long-term leases and mortgages. You'll also learn how to account for these types of long-term liabilities.
8. Accounting for Contingencies & Environmental Liabilities
Sometimes in business, things happen that can impact the bottom line of the company. But how do you plan for the financial aspect of these possible events? In this lesson, we'll look at how to account for contingencies and environmental liabilities.
9. Uncollectible Accounts, the Allowance Method & Bad Debt
Do you think that every customer that opens a credit account will pay off their balance completely? In the real world, not every customer does. In this lesson, you are going to learn what uncollectible accounts are and how to account for them.
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Other chapters within the Accounting 302: Advanced Accounting course
- Business Ownership Types
- Key Accounting Concepts
- Journals & Ledgers in Accounting
- Accounting Equations & Formulas
- Financial Statements, Balance Sheets & Income Statements
- Analyzing Financial Statements
- Financial Statement Ratios
- Accounting for Inventory
- Accounting for Depreciation
- Adjustments & Closing Entries
- Corporate Accounting
- Departmentalized Accounting
- Taxation for Corporations
- Business & Financial Forecasting
- Required Assignments for Accounting 302
- Studying for Accounting 302