Section 2
Current Liabilities
By Boundless
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Current liabilities are usually settled with cash or other assets within a fiscal year or operating cycle, whichever period is longer.
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Accounts payable is money owed by a business to its suppliers and creditors and typically shown on its balance sheet as a current liability.
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A note payable is a liability where one party makes an unconditional written promise to pay a specific sum of money to another.
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The portion of long-term liabilities that must be paid in the coming 12-month period are classified as current liabilities.
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Per FASB 6, current obligations that an enterprise intends and is able to refinance with long term debt have different reporting requirements.
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Dividends are payments made by a corporation to its shareholders; the payment amount is reported as dividends payable on the balance sheet.
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A deferred revenue is recognized when cash is received upfront for a product before delivery or for a service before rendering.
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Other current liabilities reported on the balance sheet are sales tax, income tax, payroll, and customer advances (deferred revenue).