Presented below is the current liabilities section of Micro Corporation.\n($000)\n2015 2014\nCurrent liabilities\nNotes payable $ 68,713 $ 7,700\nAccounts
Presented below is the current liabilities section of Micro Corporation.
\r\n($000)
\r\n2015 2014
\r\nCurrent liabilities
\r\nNotes payable $ 68,713 $ 7,700
\r\nAccounts payable 179,496 101,379
\r\nCompensation to employees 60,312 31,649
\r\nAccrued liabilities 158,198 77,621
\r\nIncome taxes payable 10,486 26,491
\r\nCurrent maturities of long-term debt 16,592 6,649
\r\nTotal current liabilities $493,797 $251,489
\r\nInstructions
\r\nAnswer the following questions.
\r\n(a) What are the essential characteristics that make an item a liability?
\r\n(b) How does one distinguish between a current liability and a long-term liability?
\r\n(c) What are accrued liabilities? Give three examples of accrued liabilities that Micro might have.
\r\n(d) What is the theoretically correct way to value liabilities? How are current liabilities usually valued?
\r\n(e) Why are notes payable reported first in the current liabilities section?
\r\n(f) What might be the items that comprise Micro’s liability for “Compensation to employees”?