Accounting for Current Liabilities

2 Pages

Financial Accounting
Course Code
Liang Chen

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Accounting for Current Liabilities Two key features: it is likely to be paid within one year or operating cycle, and it will be paid from existing current assets or through the creation of other current liabilities Liabilities are described as definitely determinable, estimable, or contingent Definitely Determinable Liabilities This is one with a known amount, payee, and due date Operating Line of Credit This means that the company has been pre-authorized by the bank to borrow money, up to a preset limit, when it is needed. Collateral is usually required by the bank as protection in the event of a default on the loan. A number of companies show a negative, or overdrawn, cash balance at year end as a result of using their line of credit. This amount is known as bank indebtedness, bank overdraft, or bank advances Notes Payable Notes payable are obligations in the form of written promissory notes. Most notes are interest-bearing. Interest is due at maturity; however, interest accrues over the
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.