The current portion of long term loan or long term debt is a current liability. It is the amount of debt principal repayable within 12 months of the balance sheet date. The current portion of long-term debt is not the same as short term debt.
A business operating a perpetual inventory system needs to record goods received into inventory even if it has not yet received an invoice from its supplier. Since the liability cannot be posted to the accounts payable account, a temporary posting is made to the goods received not invoiced account.
Gift cards accounting involves establishing a liability for the obligation to provide goods at a future date. A customer can redeem gift cards and the liability is reduced due to gift card revenue recognition. Not all gift cards are redeemed and the business needs to estimate the revenue (breakage) to be released proportionately as other gift card balances are redeemed by customers.
Accrued expenses are expenses which has been incurred but not yet recorded in the accounting ledgers at the end of the accounting period.
A business has an annual premises rent of 12,000 but an invoice has not been received from the landlord and the rental expense has not been recorded in the accounting records.