Current Liabilities Flashcards
1
Q
For a liability to be recorded, it must come from…
A
- Probable sacrifices of economic benefits
- A present obligation
- A past transaction or event
2
Q
A current liability is…
A
An obligation that a company expects to fulfill w/ current assets or by creating other current liabilities
3
Q
Examples of current liabilities are…
A
- Payables
- Collections received in advance (unearned revenue)
- Other liabilities that’ll be liquidated within the operating cycle
4
Q
Accounts Payable
A
Money owed to companies purchased on account
