Current Liabilities and Payroll Accounting

These flashcards cover the key terms and concepts related to current liabilities and payroll accounting as mentioned in the lecture.

Current Assets

Assets expected to be consumed or converted into cash within one year or the operating cycle.

Current Liabilities

Obligations a company expects to settle within one year or the operating cycle.

Notes Payable

A liability representing a formal promise to pay a specified amount at a future date, often including interest.

Accounts Payable

Money a company owes to its suppliers for products or services purchased on credit.

Accrued Liabilities

Expenses that have been incurred but not yet paid, such as taxes, salaries, and interest.

Unearned Revenues

Prepayments received by a company for services or goods to be delivered in the future.

Interest Payable

Liability representing interest that has been incurred but not yet paid.

Sales Taxes Payable

Taxes collected from customers by a retailer that are owed to the government.

FICA Taxes Payable

Federal Insurance Contributions Act taxes that are deducted from employee paychecks for Social Security and Medicare.

Payroll Taxes Payable

Obligations a company must pay related to employee wages and withholdings.

Accrued Payroll Taxes

Taxes owed on wages that have been earned but not yet paid to the government.

Operating Cycle

The period of time it takes for a company to buy inventory, sell it, and collect cash from customers.

Adjusting Entry

An entry made at the end of an accounting period to allocate income and expenditure to the appropriate period.

Payment of Note at Maturity

The transaction in which the borrower pays off a note payable including interest at its due date.