Accounting_CH.9

19 cards·by stierdaniel

liability

an amount or service owed to another party

current

liability due within one year (or within companies operating cycle if longer than a year)

long-term

liability due within more than a year

current liabilites include...

accounts payable, trade, sales

trade accounts payable

amounts due for merchandise purchases

sales tax payable

amounts collected from custoimer at time of sale that must be paid to a governement

collection of net sales does ______ increase revenues of company

not

unearned revenues

amounts received in advance from customers for future products or services

entry to record receipt of amounts in advance for future products or services

cash, unearned revenue

entry to record revenue of amounts in advance for future products or services earned

unearved reveue, revenue

short term notes payable

written promise to pay a specified amount on a specified future date

accounts payable, notes payable

creditor insist on replacing account payable with note payable becuase we didnt pay withing year

Cash, Note payable

bank may loan to us directly

notes payable are outstanding at end of period, we must compute accrued interest, adjusted entry:

Intrest expense, interest payable

gross pay

total compensation an employee earnes (before deductions)

net pay

compensation with deductions taken out (take home)

payroll deductions

amounts withheld from employee's gross pay (required or voluntary). also called witholdings

employers FICA taxes

matching employee tax deduction

estimated liabilties

obligations that are uncertain but can be reasonably estimated