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| LO2 - Record and disclose known current liabilities. |
Known current liabilities are those where the payee, amount, and timing of payment are known. Examples include accounts payable, unearned revenues, and payroll liabilities. These are different from estimated current liabilities where the amount is not known and must be estimated. These may arise when a supplier’s invoice has not been received by the time the financial statements have been prepared, for instance. Estimated current liabilities are discussed later in this chapter.
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