Vol. 3 LM2 Current Liabilities Flashcards
Define
current liabilities
Balance Sheet
liabilties that are expected to be settled in
1. the entity’s normal operating cycle,
2. held primarily for trading, or
3. due to be settled within 12 months after the balance sheet date
Balance Sheet
Classification
Liabilties that are expected to be settled in the entity’s normal operating cycle
Balance Sheet
current liabilties
Balance Sheet
Classification
Liabilities that are held primarily for trading
Balance Sheet
current liabilities
Balance Sheet
Classification
Liabilties that are due to be settled within 12 months after the balance sheet date
Balance Sheet
current liabilities
Balance Sheet
Classification
trade payables
Balance Sheet
current liabilities
Balance Sheet
Classification
accrued expenses
Balance Sheet
current liabilities
Balance Sheet
Classification
deferred income
Balance Sheet
current liabilities
Balance Sheet
alternate name
trade payable
Balance Sheet
accounts payable
Balance Sheet
Define
Trade payables / accounts payable
Balance Sheet
are the amounts that a company owes its vendors for purchases of goods and services.
the unpaid amount as of the balance sheet date of the company’s purchases on credit
Balance Sheet
Define
trade credit
Balance Sheet
- Refers to credit provided to a company by its vendors.
- A source of financing that allows the company to make purchases and pay at a later date
Balance Sheet
Alternate names
accrued expenses
Balance Sheet
accrued liabilties
other non-financial liabilities
Balance Sheet
Define
accrued expenses
Balance Sheet
Expenses that have been recognized on a company’s income statement, but not yet paid as of the balance sheet date.
Balance Sheet
Alternate names
deferred income
Balance Sheet
unearned revenue
Balance Sheet
Classification
accrued interest payable
Balance Sheet
Accrued liabilities (current)
Balance Sheet
Classification
accrued warranty costs
Balance Sheet
Accrued liabilities (current)
Balance Sheet
