| A | B |
|---|
| Accrued expense | an expense incurred in one fiscal period but not paid until a later fiscal period. |
| Current liabilities | liabilities that a business expects to pay off in one year or within the normal operating cycle whichever is longer. |
| Discounted notes payable | deducting the interest on a note payable at the time the note is issued. |
| Long-term liabilities | liabilities that are not due during the next fiscal period or operating cycle. |
| Net amount method | recording invoices in the accounting records at their net amount (total amount less cash discount) based on the assumption that the business always takes advantage of cash discounts offered. |
| Noninterest-bearing note payable | a note payable from which the interest has been deducted in advance. |
| Note payable | a promissory note accepted by a person or business. |
| Prepaid expense | expense paid in advance such as the bank discount on a non-interest-bearing note. |
| Unearned revenue | revenue received in advance but not yet earned. |
