ACC 110 Chapter Notes - Chapter 9: Current Liability, Accounts Payable
1 Dec 2011
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Liabilities: obligations to provide cash, goods, or services to customers, suppliers, employees, government, lenders and anyone else an entity (owes something to ) Settlement requires a sacrifice of resources and not negotiable. Current liabilities: obligations that will be satisfied in one year or one operating cycle. Long-term liabilities: obligations that will be satisfied over one year or longer than one operating cycle. Demand loans must be repaid whenever the lender request repayment. Considered current because lender"s right to call the load at any time even though they rarely demand repayment and the loans remain on the book for a long time. Amount an entity owes to suppliers for goods and service. Goods and services include anything the entity uses in the course of its operation, including inventory, supplies, labour and etc. Most entities act as tax collectors for various government taxation authorities. Tax on income to both the federal and provincial government.
