Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

Which of the following is NOT a current liability account?

Accounts Payable

Notes Payable (due in 2 years)

Unearned Revenue

Salaries Payable

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Understand the definition of a current liability: A current liability is an obligation that a company expects to settle within one year or within its operating cycle, whichever is longer.

Review each option provided in the question to determine if it meets the criteria for a current liability.

Option 1: Accounts Payable - This is a current liability because it represents amounts owed to suppliers that are typically due within a short period, such as 30 to 60 days.

Option 2: Notes Payable (due in 2 years) - This is NOT a current liability because it is due in more than one year, making it a long-term liability.

Option 3: Unearned Revenue and Option 4: Salaries Payable - Both are current liabilities. Unearned Revenue represents obligations to provide goods or services in the near term, and Salaries Payable represents wages owed to employees, typically due within a short period.