LONG-TERM LIABILITIES

(450) OTHER LONG-TERM LIABILITIES

This account is used to record all other long-term liabilities not falling under any of the specific long-term liability accounts.

Debit this account for: Settlement/Payment of the long-term liabilities

Credit this account for:• Incurrence of other long-term liabilities not classified under specific accounts• Other liabilities

Example: Government acquired a land using mortgage.

(Dr) Land (Cr) Mortgage Payable

DEFERRED CREDITSA deferred credit could mean money received in advance of it being earned, such as deferred revenue, unearned revenue, or customer advances. A deferred credit could also result from complicated transactions where a credit amount arises, but the amount is not revenue.A deferred credit is reported as a liability on the balance sheet. Depending on the specifics, the deferred credit might be a current liability or a noncurrent liability. In the past, it was common to see a noncurrent liability section with the heading Deferred Credits.

(455) OTHER DEFERRED CREDITS

This account is used to record collections received for items not specifically included in account “Deferred Credits to Income”

Debit this account for: Transfer to appropriate account

Credit this account for:• Collections for items not specifically included in account “Deferred Credits to Income”

Example:

Definition of 'Deferred Income Tax'A liability recorded on the balance sheet that results from income already earned and recognized for accounting, but not tax, purposes. Also, differences between tax laws and accounting methods can result in a temporary difference in the amount of income tax payable by a company. This difference is recorded as deferred income tax.

In other words, this would mean that income has been realized, but the tax on that income has not.

For example, let's say that the amount of tax that a business should pay is $100,000, but due to tax laws, the amount actually payable for this fiscal year is $85,000. The additional $15,000 would be a deferred income tax liability that the company would need to pay later on.

(452) DEFERRED REAL PROPERTY TAX INCOME

(452) DEFERRED SPECIAL EDUCATION TAX INCOME