Chapter 9

• Accrued liabilities - Expenses that have been incurred but have not been paid at the end of the accounting period.
• Annuity - A series of equal amounts of cash that are paid or received at equally distant points in time.
• Contingent liability - A possible liability that is created as a result of a past event; it is not an effective liability until
some future event occurs.
• Current liabilities - Short-term obligations that will be settled within the coming year by providing cash, goods, other
current assets, or services.
• Deferred revenue - Previously recorded liability that needs to be adjusted at the end of the accounting period to
reflect the amount of revenue earned.
• Future value - The sum to which an amount will increase as a result of compound interest.
• Liabilities - Present debts or obligations of the entity to transfer an economic resource as a result of past events.
• Liquidity - The ability to pay current obligations.
• Present value - The current cash equivalent of an amount to be received in the future, or a future amount
discounted for compound interest.
• Provision - A liability of uncertain timing or amount.
• Time value of money - Interest that is associated with the use of money over time.
• Working capital - The difference between current assets and current liabilities.