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Items in Bold can be ignored CURRENT LIABILITIES CURRENT LIABILITIES Short hand definition: liabilities that are due and  payable within the next accounting period or operating cycle, whichever is longer. Obligations that are expected to required 1. the use of current assets or 2. the creation of other current liabilities CLASSIFICATION 1. Determinable v. Estimated v. Contingent  a. Determinable means that the existence of the liability is not in doubt, and  the payee, amount, due date, etc. can be reliably determined. Virtually no  uncertainty exists. b. Estimated means that the amount is uncertain c. Contingent means that the existence of the liability is uncertain. NOTE: Some view this classification as Determinable v. Contingent; i.e.,  either everything can be reliably determined or the liability is contingent. 2. Monetary v. Non-monetary a. Monetary means that the liability must be redeemed for cash b. Non-monetary means that services or some noncash asset is required.
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Accounts Payable (Or trade accounts payable) Represent amounts owed for goods, supplies or services purchased on credit Notes Payable Can be classified as trade notes payable (similar to trade accounts payable) or  simply notes payable which arise generally from cash loans from a financial  institution.   Current Maturities of Long Term Debt Represents a liability that was originally classified as long term but has become  due in the next period.
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