Summary

Liabilities

• Current Liabilities: obligations due within 1 year
  • Notes Payable (N/P) - promissory notes to creditors to pay certain amount of money usually with interest.
  • Accounts Payable (A/P) - creditors arising out of credit purchases.
  • Unearned Revenue - cash received in advance before services are rendered or goods are delivered.
  • Other Payables - expenses which are already due but not yet paid during accounting period (salaries payable, interest payable, and utilities payable).
• Non-Current Liabilities: obligations due beyond 1 year
  • Mortgage Payable - long-term loan secured by a mortgage on real estate.
  • Bonds Payable - long-term debt securities issued to investors for a period longer than 1 year.
  • Long-term Notes Payable - promissory notes to creditors to pay certain amount of money usually with interest.