会计英语第6章.pptx

会计英语;6.1 Current Liabilities 6.1.1 Definition of Current Liabilities Current liabilities are those obligations that are reasonably expected to be paid by using current assets or by creating other current liabilities. Current liabilities can be accounts payable, short-term notes payable, unearned revenue, short-term borrowings, accrued liabilities, dividends payable, the current portion of long-term debt, and so on. .;Accounts payable usually refers to the amount due for the purchase of materials by a manufacturing company or merchandises by a merchandising company. Accounts payable are usually not recorded when purchase orders are placed, but when legal right to the goods passes to the buyer. If goods are in transit at the year end, the purchase also should be recorded if the shipment terms indicate that the ownership of goods has been passed.;Short-term notes payable are obligations in the form of written promissory notes. Short-term notes payable may be either interest-bearing or non-interest-bearing. In theory, short-term notes payable should be recorded at the present value of the cash outflows associated with the note.;Short-term notes payable are obligations in the form of written promissory notes. Short-term notes payable may be either interest-bearing or non-interest-bearing. In theory, short-term notes payable should be recorded at the present value of the cash outflows associated with the note.;Short-term borrowings usually arise from cash borrowings and are generally payable to banks or loan companies. It is from financing activity Its repayment period is usually between thirty days to one year. At the maturity date, the borrowing company repays the principal as well as the interest subordinated to the principal.;Accrued liabilities arise from the recognition of expenses to be paid in a future period. It is also called accrued expenses. Examples of accrued liabilities include taxes payable, interest payable, and employee compensation payable.;1