CH 13

Probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Obligations whose liquidation is reasonably expected to require the use of current existing resources properly classified as current assets, or the creation of other current liabilities.

Are balances owed to others for goods, supplies, or services purchased on open account.

• Accounts Payable
• Notes Payable
• Current maturities of long term debt
• Short term obligations expected to be refinanced
• Dividends payable
• Customer advances and deposits
• Unearned revenue
• Sales tax payable
• Employee related liabilities

Period o time elapsing between the acquisition of goods and services involved in the manufacturing process and the final cash realization resulting from sales and subsequent collections.

written promises to pay a certain sum of money on a specified future date