Chapter 9 Terminology Flashcards
Liabilities due within one year.
Current liabilities or short-term liabilities
Obligations due after one year.
Long term liabilities
Measurable obligations arising from agreements, contracts, or laws. These include accounts payable, notes payable, payroll obligations, sales tax, and unearned revenues.
Known liabilities
Written promise to pay a specified amount on a stated future date within one year.
Short-term notes payable
Total compensation an employee eats included wages, salary, etc BEFORE deductions.
Gross pay
Gross minus all deductions
Net pay
Amounts withheld from an employees gross pay, either required or voluntary.
Payroll deductions
Employees withhold _________ from employees pay.
Federal Contributions Act (FICA) taxes
The state assigns a __________ based on a company’s stability in employing workers.
Merit rating
The ______________ is that part of long-term debt due within one year.
Current portion of long-term debt
________ is a known obligation of an uncertain amount that can be reasonably estimated.
Estimated liability
A ___________ is a sellers obligation to replace or fix a product or service that fails to perform as expected within a specified period.
Warranty
_______ is a potential obligation that depends on a future event arising from a past transaction or event.
Contingent liability
