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CURRENT LIABILITIES &  Form

CURRENT LIABILITIES & Form

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[Music] current liabilities are formed when a company buys goods and services on credit or receives short-term loans a car liability is an amount owed that is expected to be paid within one year of the balance sheet date or during the operating cycle whichever is longer examples of current liabilities typically include accounts payable short-term notes wages payable taxes payable and unearned revenue the most common type of current liability is accounts payable accounts payable are recorded when a business purchases goods or services from a vendor or a supplier on credit for example an invoice for miss a flyer that is due within 30 days is just like a 30 day interest-free loan from the supplier and therefore it's considered an account payable which is a current liability suppose that J company purchases supplies on credit from green company on July 15th green company invoices J company for $700 and the payment is due on August 15th which is 30 days later the $700 becomes an acc

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