| A | B |
|---|
| current liabilities | The debts or obligations that a business expects to pay off in one year or within one operating cycle |
| long-term liabilities | Liabilities that are not due during the next accounting period or operating cycle |
| note payable | a promissory note issued by a person or a business |
| accrued expense | An expense incurred in one accounting period but not paid until a later period |
| discounted note payable | the bank deducts the interest from the face value of the note and gives the borrower the difference |
| noninterest-bearing note payable | A note payable in which the face value and maturity value are the same |
| prepaid expense | an expense that is paid in advance |
| net amount method | An accounting method that assumes that the business always takes cash discounts |
| unearned revenue | Revenue received in advance but not yet earned |
