Chapter 11 Current Liabilties and Payroll Accounting

Current liabilities

liabilities due within 1 year

Long-term liabilities

Liabilities due after 1 year

Unearned revenues

Amount received in advance from customers for future products or services; to record cash received in advance

Short-term note payable

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

Gross pay

Total compensation an employee earns before deductions such as taxes.

Payroll deductions

Amounts withheld from an employee’s gross pay either required or voluntary

FICA-Social Security taxes payable

Withholdings to cover retirement, disability, and survivorship. Social security tax is 6.2v% of the first 137,700 the employee earns for the year.