会计英语PPT(完成版) Chapter 10- Liabilities

A term loan is a monetary loan that is repaid in regular payments over a set period of time. The lender is usually a bank or an insurance company. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
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Current Liabilities
Current liabilities are those that are due or payable within one year or current operation cycle, whichever is longer. For instance, accounts payable, notes payable, taxes payable, accrued expenses, deferred revenues, and current portions of long-term debts are all current liabilities.
Accounts payable are money owed by a business to its suppliers shown as a liability on a company’s balance sheet.
Accounts payable mainly refer to trade payables, payables for the purchase of physical goods that are recorded in inventory.
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Accrued expenses are expenses to be paid for goods or services received in a period but have not yet been invoiced for by the suppliers.
A deferred revenue (also called unearned revenue) is money that is received before the entity delivers goods or provides services. A current portion of long-term debt represents the part of a noncurrent liability that is due within the next twelve months. That amount is considered a current liability.
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For a company, bonds are a more significant source of noncurrent liabilities. A bond is a form of interest-bearing note payable, representing money that a corporation borrows from the investing public.
Notes payable are often used instead of accounts payable because they give the lender formal proof of the obligation.
Taxes payable represent the amounts the entity owes to the government for taxes. Taxation usually sets rules for an entity different from financial accounting rules.
Chapter 10. Liabilities
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Noncurrent Liabilities
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Liabilities
Liabilities are the existing obligations of an enterprise as a result of past transactions or other past events which will sacrifice future economic benefits of the enterprise. Examples of liabilities are amounts owed to a supplier for goods bought on credit, amounts owed to a lender, tax payable and so on. Some liabilities are due to be repaid fairly quickly. Other liabilities may take some years to repay. Thus, liabilities can be classified as current liabilities and noncurrent liabilities.urrent Liabilities
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Debts that do not meet the criteria for being classified as current liabilities are called noncurrent liabilites or long-term liabilities.
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Accounts payable and Notes payable There is a distinction between accounts payable and notes payable, which are debts owed to financial institutions such as a bank and created by formal legal instrument documents.