Common use of Customer Deposits Clause in Contracts

Customer Deposits. Amounts received in advance from a customer to be recorded in the financials as a liability. Customer deposits include the liability offset for investigator cash received. Accounts Payable Accounts payable are presented as a current liability on the balance sheet and detail the amounts owed for services or items purchased on credit. Accrued Expenses Services or expenses incurred that have already been provided but for which no invoice has been received, such as professional fees. Deferred Revenue Amounts received in advance of the revenue being recognized. Current Assets Cash and other resources that are expected to turn to cash or to be used up within one year of the balance sheet date. Current assets are presented in the order of liquidity, i.e., cash, temporary investments, accounts receivable, inventory, supplies, prepaid insurance. Current Liabilities Obligations due within one year of the balance sheet date. Another condition is that the item will use cash or it will create another current liability. (This means that if a bond payable is due within one year of the balance sheet date, but the bond will be retired by a bond sinking fund (a long term restricted asset) the bond will not be reported as a current liability.)