1. Liabilities 2. Contingent liabilities 3. Current liabilities 4. Account payable 5. Accrued liabilities Chapter 8 Definitions A. When a business purchases goods or services on credit E B. Liability created when customers pay for goods or services in advance C. Probable future sacrifices of economic benefit K D. Interest rate stated on a note payable E. When a business borrows money that requires a formal agreement or contract F. A liability that depends on a future event G. Taxes related to wages and salaries collected by the Employer/business H. Liabilities that are recognized by adjusting entries 1. Payment for goods and services by customers in advance J. A tax collected at the time of a sale K. Obligations that require the firm to pay cash or another 6. Note payable 7. Interest rate 8. Sales taxes 9. Withholding\payroll taxes 10. Unearned revenue 11. Warranty current asset