Chapter summary

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TOPICS COVERED IN THIS CHAPTER
Chapter 10 is basically an introduction to accounting and business. The chapter clearly defines what current liabilities are and the time of the year when they are supposed to be paid. The main types of liabilities discussed in the chapter are accruals, notes payable, accounts payable and lastly the immediate part of the long-term debt. In the chapter, there are some additional concepts like payroll liabilities which is for workers earning and also part of the employer payroll taxes. Another liability introduced is a contingent liability that is based on a past transaction and mostly depends on the future event. Also discussed in the chapter is how an employer liability is determined from his total earnings. Other liabilities incurred by the employer for payroll taxes include medical tax, security tax, and state and federal unemployment compensation tax. Fringe benefits are also introduced in the chapter are enjoyed by employees who work over a certain period of time (Bléjer, 16).
IMPORTANCE OF TOPICS COVERED IN THIS CHAPTER
In business, the field of accounting is very paramount. Any organization that does not have a good financial tracking record is bound to fail. It’s very important for employees to understand what can limit them when it comes to financial management. The chapter is also very important to people who are interested in getting loans from accredited institutions like banks.

With this knowledge, employees can know the right time to take a loan from banks and the mode of payments. The chapter is important also to employees when it comes to payroll liabilities. Many employers find it challenging when dealing with employee payments and benefits. This is where accounting becomes an integral part of the organization.
Work Cited
Bléjer, Mr Mario I. Central Banks Use of Derivatives and Other Contingent Liabilities-Analytical Issues and Policy Implications. International Monetary Fund, 2000.