Current Liabilities
Current liabilities include all the financial obligations of an organization that have to be settled in the coming fiscal year. Money owed to suppliers is the most common example, but after that, things get much more complicated.
This is a somewhat more advanced topic, but have patience. Remember that each of these complicated ways of accounting for common business activities has come about because someone, somewhere, tried to take advantage of accounting loopholes. These are the solutions that accountants came up with to close the loopholes .. and create more work for accountants!
00:00 Current Liabilities
00:00 Introduction
00:22 Claims on the Company
10:59 Time Value of Money
12:37 Types of Current Liabilities
13:09 Line of Credit
16:18 Accounts Payable
17:06 Unearned Revenue
17:29 Gift Cards
23:21 Loyalty Programs
23:53 Internal Loyalty Program
33:48 External Loyalty Program
41:38 Warranties
45:42 Provisions
49:44 Other Current Liabilities
50:47 Near Liabilities
52:32 Summary
Visit the course website (https://fearfulasymmetry.ca/) for a readable version of this lesson, complete with downloadable course material. The text version of this lecture acknowledges that the LCBO (the world's largest purchaser of alcohol) has recently switched its loyalty program from Air Miles to Aeroplan. Thankfully, that doesn't affect the accounting discussion in the slightest.
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Musicbed: "Money, Money, Money" by Michael McEachern (MB01N8U3AHKLGZG)