(Answered) Nature of liabilities presented below is the current

Accounting

(Nature of Liabilities) Presented below is the current liabilities section of Micro Corporation.

($000) 2018 2017

158,198 77,621 Income taxes payable 10,486 26,491 Current maturities of long-term debt 16,592 6,649 Total current liabilities$493,797$251,489 101,379 Compensation to employees 60,312 31,649 Accrued liabilities 179,496 68,713$ 7,700 Accounts payable Current liabilities Notes payable$

Instructions - Answer the following questions.

(a) What are the essential characteristics that make an item a liability?

(b) How does one distinguish between a current liability and a long-term liability?

(d) What is the theoretically correct way to value liabilities? How are current liabilities usually valued?

(e) Why are notes payable reported first in the current liabilities section?

(f) What might be the items that comprise Micro's liability for "Compensation to employees"?

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