Line of credit: a method of short-term borrowing and it allows a company to access credit on an as-
needed basis up to a maximum amount set by the lender.
Accounts payable: Amounts owed for products or services purchased on credit
Accrued liabilities (Accrued expenses): results from an expense the business have incurred but has not
yet been billed for or paid.
Salaries and Wages Payable
is the liability for salaries, wages, and related
payroll expenses not yet paid at the end of the period. Services used but not paid for.
Deferred revenue: have received cash but haven't provided services
Short-term notes payable: notes payable paid within one year
Sales tax payable: to the government levying the tax. Canada has three types of sales taxes:
Goods and services tax (GST) is a value-added tax levied by the federal government. At the time
of writing, the tax is 5%. It applies to most goods and services.
Provincial or regional sales tax (PST) is a retail tax applied to goods and services purchased by
individuals or businesses
for their own use,
not for resale, with the rates varying by province or
region. At the time of writing, Alberta, the Northwest Territories, Nunavut, and Yukon do not
levy a provincial or regional sales tax.
Harmonized sales tax (HST), which combines PST and GST, is also a value-added tax. Prince
Edward Island, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Ontario, together
with the federal government, levy an HST.
Payroll: also called
, is a major expense for most companies