BUS 251 Lecture Notes - Lecture 9: Gift Card, Deferred Income, Accounts Payable

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzel

Document Summary

Customer loyalty programs are a current liability arising form a company"s transactions with customers. Current liabilities are those that the company expected to settle within the next 12 months. Liability: an amount that the company owes to others. Liability: an item that will require the outflow or sacrifice of economic resources in the future to settle an obligation that exists as a result of a transaction that has already taken place. In most cases, the economic resource that will be sacrificed is cash, but a company can also settle a liability by providing services or goods or even replacing it with another liability. Current liabilities: expected to be settled within the next 12 months. All other liabilities are considered to be long-term liabilities. Working capital: quantified as the difference between a company"s current assets and its current liabilities. Users focus on it as a measure of a company"s ability to meet its short-term obligations using its short-term assets.