Current Liabilities and Payroll Accounting

This set of flashcards covers key terms and concepts related to current liabilities and payroll accounting as presented in Chapter 11 of Wild and Shaw's Fundamental Accounting Principles.

Current Liabilities

Liabilities that are due within one year or the company’s operating cycle if longer.

Long-Term Liabilities

Liabilities that are due after one year or the company’s operating cycle if longer.

Known Current Liabilities

Liabilities that are known and can be identified, such as accounts payable and sales taxes payable.

Unearned Revenues

Payments received before goods or services are delivered, considered a current liability.

Short-Term Notes Payable

A written promise to pay a specified amount on a stated future date within one year.

Payroll Liabilities

Liabilities arising from salaries and wages, employee benefits, and payroll taxes.

FICA Taxes

Federal Insurance Contributions Act taxes, including Social Security and Medicare taxes.

Employer Payroll Taxes

Taxes that employers are required to pay based on employee payroll withholdings.

Contingent Liabilities

Potential obligations that may arise depending on the outcome of a future event.

Estimated Liabilities

Known obligations of uncertain amounts that can be reasonably estimated.

Warranty Liabilities

Obligation of a seller to repair or replace a product that fails to meet standards within a specified period.

Adjusting Entry

An entry made to adjust the balances in accounts at the end of an accounting period.