1.A current liability must be paid out of current earnings.
2.Current liabilities are expected to be paid within one year or the operating cycle, whichever is longer.
3.The relationship between current liabilities and current assets is important in evaluating a company's ability to pay off its long-term debt.
4.A company whose current liabilities exceed its current assets may have a liquidity problem.
5.Notes payable usually require the borrower to pay interest.
6.Notes payable are often used instead of accounts payable.
7.A note payable must always be paid before an account payable.
8.A $30,000, 8%, 9-month note payable requires an interest payment of $1,800 at maturity.
9.Most notes are not interest bearing.
10.With an interest-bearing note, the amount of cash received upon issuance of the note generally exceeds the note's face value.