Table of contents

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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 considered a current liability?

Accrued Expenses

Unearned Revenue (to be earned within 12 months)

Accounts Payable

Notes Payable (due in 18 months)

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Understand the definition of a current liability: A current liability is an obligation that is expected to be settled within one year or the operating cycle, whichever is longer.

Review each option provided in the problem and determine whether it meets the criteria for a current liability.

Accrued Expenses: These are expenses that have been incurred but not yet paid, and they are typically settled within one year, making them a current liability.

Unearned Revenue (to be earned within 12 months): This represents cash received in advance for goods or services to be provided within one year, qualifying it as a current liability.

Notes Payable (due in 18 months): Since this obligation is due beyond one year, it does not meet the definition of a current liability and is instead classified as a long-term liability.