Identify and record the types of activities that produce current liabilities.

- Current liabilities are obligations to outsiders that require the firm to pay cash or another current asset or provide goods or services within the longer of one year and one operating cycle.

- Such obligations are the result of many common transactions such as:

- purchasing goods or services on credit (i.e., accounts payable)

- the completed portion of activities that are in process at the end of the period such as wages, interest, or property taxes (i.e., accrued liabilities)

- sales taxes collected from customers

- payroll taxes such as CPP, EI, and income taxes withheld from employees and other payroll-related costs including worker safety board premiums

- corporation income tax payable

- notes payable

- goods or services paid for in advance by customers (i.e., unearned or deferred revenues)

- the portion of long-term debt due within the year