Liabilities that will be due within one year or less and that are to be paid out of current assets are called current liabilities. True False A current loan is due in two years. True/False? Accrued expenses are liabilities yet to be paid. True or False...
A current liability is: An obligation that will be due within one year of the date of the company’s balance sheet, and Will require the use of a current asset or will create another current liability However, if a company’s normal operating cycle is longer than one year, current liabil...
5) An example of a current liability is A) a loan secured by a mortgage and payable in 8 months. B) any loan payable to a bank. C) all accounts due from customers within the next year. D) a note payable in full in 18 months. E) an account due from a customer that is...
Which of the following is NOT a liability? A. accounts payable B. unearned revenue C. accumulated depreciation D. long-term debt Accounts: There are many accounts in an accounting system, and these are displayed through the chart of account...
Definition:A current liability is an obligation that must be repaid within the current period or the next year whatever is longer. In other words, it’s a short-term loan or long-term debt that will become due in the next 12 months and require payment of current assets. ...
A current liability for 1) the principal payments that will be coming due within one year after the balance sheet date, and 2) any accrued interest that is owed as of the balance sheet date. (Future interest is not reported as a liability until the accounting periods in which the interest...
A home equity loan is a loan taken out against the equity in your home. Equity is the difference between the current market value of your home and the amount you still owe on your mortgage.
If a company has a loan, then the interest paid upon it can be considered an accrued liability. This is because interest payments tend to be paid either monthly or annually. Wages It is common for businesses who pay their employees bi-weekly to have wages as an accrued liability. This is...
The term “amortization” refers to two situations. First, amortization is used in the process of paying off debt through regularprincipalandinterestpayments over time. An amortization schedule is used to reduce the current balance on a loan—for example, a mortgage or a car loan—throughinstallme...
discussions with the bank about the possibility of repaying the loan within the next financial year. Sirus is uncertain about the accounting treatment for the current loan agreement and whether the loan can be shown as a current liability because of the discussions with the bank. (6 marks) App...