BUS 251 Chapter Notes - Chapter 9: Gift Card, Deferred Income, Current Liability

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzell

Document Summary

Loyalty programs = deferred revenue (a liability) b/c revenue has not been earned yet. A liability can be setled through cash, providing goods or services, or another liability. Liability: a present obligaion of the enity, the company expects to setle it through an ouflow of resources that represent future economic beneits, the obligaion results from an event that has already occurred. Current liability = expected to be setled within the next 12 months. Long-term liabiliies = more than 12 months = non-current liability. Users use it as a way to measure how well a company meets its short term obligaions using its short-term assets. The amount that current liabiliies are relected on the statement of inancial posiion: Current liabiliies that arise from transacions with lenders: Credit current porion of long-term debt: allows for uses to esimate the current ouflow of cash.