Chapter 9 Flashcards
1
Q
What is a current liability
A
A debt a company expects to pay from existing current assets or through the creation of other current liabilities, or within one year of the operating cycle (whichever is longer)
2
Q
Current liabilities include…
A
Notes payable, accounts payable, unearned revenues, and accrued liabilities (taxes, salaries, interest)
3
Q
Current maturities of long term debt
A
Portion of long-term debt that comes due in current year, no adjusting entry required
