Verizon Communications is the company which is going to be used in module 7, so as you read I will try to explain how Liability Recognition and Nonowner Financing works. We all know who Verizon Communication is, they are one of the biggest cell phone providers. Even though I have service with AT&T, Verizon offers competitive prices for their services. Verizon Communications services and products, they sell are wirelines and wireless communications as we all know it as cell phones. Verizon Communications is up for a challenge due to more companies sell the same products at package deals, which include local voice, high speed internet connections, and video. Because of the competition of other companies, Verizon Communication’s has had to spend
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Accrued liabilities are the wages of employees that have not been paid, taxes for payroll and period profits and the other accruals would be utilities, rent and insurance. The last one under current operating liabilities is unearned revenue, is the one that provides the good and services to customer in the future. As for the current nonoperating liabilities, the first one is the short-term interest-bearing debt this one deals on how companies or business have short-term banks who borrow and note that are anticipated to grow in whole or half in the future. The current maturities of long-term debt, with the long-term borrowing which are schedule to grow in a year’s times which is the principal’s payments. Now that I gave a little description of what accounts payable, accrued liabilities, and unearned means, let me talk about how they work for a company or business. Let’s start with accounts payable, comes from the purchase of goods and services which are usually non-interest-bearing in which means a reasonable financing source. Some companies report their accounts payable accounts on their balance sheet, Verizon Communications prefers to report it in a different accrual. In 2010 Verizon Communications reported in accounts payable and accrued liabilities an amount of $15,702 million. Accounts payable turnover is a reflection on an CFO or …show more content…
Companies usually try to structure their finances in order to have the short-term loans can earn the interested needed for the company can make money. AS for the short term interests bearing debt, deals with the loans with other companies, the receive a loan for a short time instead of a long time. Short term loans are better to receive than a long term. Because with short term the company or business will pay less interest. It's like when you buy a car, they offer you a certain interest rate depending on our credit and the length of the loan. For example, I recently bought car and the loan that was offered to me was a long term which was six years one with a lower interest rate or a short term was a four years loan with a higher interest. So I decide to take the long term loan with the lower interest, this way I could pay extra on the car loan and if i keep it up, I can pay my loan off faster than the six years I has originally received. As for the long term loans which is called current maturities long term debt. In this section, this deals more with bonds and mortgages. A company needs to report all maturities the long term has received in the company's financial
Accrued liabilities are the wages of employees that have not been paid, taxes for payroll and period profits and the other accruals would be utilities, rent and insurance. The last one under current operating liabilities is unearned revenue, is the one that provides the good and services to customer in the future. As for the current nonoperating liabilities, the first one is the short-term interest-bearing debt this one deals on how companies or business have short-term banks who borrow and note that are anticipated to grow in whole or half in the future. The current maturities of long-term debt, with the long-term borrowing which are schedule to grow in a year’s times which is the principal’s payments. Now that I gave a little description of what accounts payable, accrued liabilities, and unearned means, let me talk about how they work for a company or business. Let’s start with accounts payable, comes from the purchase of goods and services which are usually non-interest-bearing in which means a reasonable financing source. Some companies report their accounts payable accounts on their balance sheet, Verizon Communications prefers to report it in a different accrual. In 2010 Verizon Communications reported in accounts payable and accrued liabilities an amount of $15,702 million. Accounts payable turnover is a reflection on an CFO or …show more content…
Companies usually try to structure their finances in order to have the short-term loans can earn the interested needed for the company can make money. AS for the short term interests bearing debt, deals with the loans with other companies, the receive a loan for a short time instead of a long time. Short term loans are better to receive than a long term. Because with short term the company or business will pay less interest. It's like when you buy a car, they offer you a certain interest rate depending on our credit and the length of the loan. For example, I recently bought car and the loan that was offered to me was a long term which was six years one with a lower interest rate or a short term was a four years loan with a higher interest. So I decide to take the long term loan with the lower interest, this way I could pay extra on the car loan and if i keep it up, I can pay my loan off faster than the six years I has originally received. As for the long term loans which is called current maturities long term debt. In this section, this deals more with bonds and mortgages. A company needs to report all maturities the long term has received in the company's financial