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Current Liabilities
Obligations whose liquidation is expected to require use of current assets or other current liabilities.
Cumulative Provision
A feature of preferred stock that guarantees dividends, making them similar to interest.
Accounts Payable
Balances owed to others for goods, supplies, or services purchased on open account.
Notes Payable
Written promises to pay a specified sum of money on a future date.
Unearned Revenues
Payments received before delivering goods or rendering services.
Sales Tax Payable
Retailers must collect taxes from customers on sales and remit these to the government.
Income Taxes Payable
Taxes that a corporation must pay based on taxable income.
Employee-Related Liabilities
Current liability amounts owed to employees for salaries, bonuses, and payroll deductions.
Contingency
An existing condition involving uncertainty regarding possible gain or loss.
Warranty Liability
Estimated costs that a company expects to incur for product repairs under warranty provisions.
Current Ratio
A measure of liquidity calculated as total current assets divided by total current liabilities.
Acid Test Ratio
A measure of liquidity that relates total current liabilities to cash and short-term investments.
Returnable Cash Deposits
Deposits from customers to guarantee performance or cover expected future obligations.
Preferred Dividends in Arrears
Dividends that are unpaid on cumulative preferred stock until authorized by the board.
Compensated Absences
Paid absences from work, such as vacation, that companies must accrue as liabilities.
Asset Retirement Obligation (ARO)
Legal obligation to dismantle a long-lived asset at the end of its useful life.
Gain Contingencies
Claims or rights to receive assets whose existence is uncertain but may become valid.
Loss Contingencies
Involve potential losses and may result in recognizing a contingent liability.
Employee Income Tax Withholding
Amount deducted from employee wages to cover applicable income tax.
Short-Term Obligations
Debts scheduled to mature within one year after the balance sheet date.
Discount on Notes Payable
A contra account to Notes Payable, subtracted from the Notes Payable on the balance sheet.
Interest-Bearing Note
A note that includes interest payments, which must be recognized at maturation.
Note 
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