Although the goods and services may already be delivered, the company has not yet paid for them in that period. Some liabilities need to be paid right away, like invoices from contractors or monthly interest payments to a bank. Investors and creditors use numerous financial ratios to assess liquidity risk and leverage. Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features. A credit line is usually valid for a specified period of time when the business can draw the funds. While such liabilities are recorded at the end of each accounting period and involve considerable estimation, accounts payable are normally recorded as the normal course of business based on proper invoices from suppliers. Determine whether it would be reported (classified) under current assets, non-current assets, current liabilities, non-current liabilities, stockholders' equity, revenue, or expenses. Accrued Expenses: They are the bills which are due to a 3rd party but not payable, for instance, wages payable. On the balance sheet, the liabilities section can be split into two components: Current Liabilities Coming due within one year (e.g. We also reference original research from other reputable publishers where appropriate. Total noncurrent liabilities : 22,603 : 19,237. If the company enjoys stable cash flows, it means that the business can support a higher debt load without increasing its risk of default. Save my name, email, and website in this browser for the next time I comment. An accrued liability occurs when a business has incurred an expense but has not yet paid it out. read more and does not exist under the cash method of accounting. In the next accounting period, when payment is made, you need to reverse the original entryReverse The Original EntryReversing entries refer to those journal entries passed in the current accounting period to offset the entries for outstanding expenses and accrued income recorded in the immediately preceding accounting period.read more, passed in the books of accounts. Accounting for an accrued liability requires a journal entry. Current liabilities include any obligations repayable within the next 12 months. Table of Contents. Non-current Liabilities. Difference between current and noncurrent assets, Difference between assets and liabilities, Difference between current and liquid assets, Liabilities which are due for payment within one financial year, Liabilities which are not due for payment within one financial year, Across several consecutive balance sheets. However, the supplier has yet to bill them. Otherslike future employee salaries, year-end . 888: 675: Contract liabilities and other current liabilities (293) (1,319) Operating lease liabilities (1,280) (762) Net cash used in operating activities (38,019) (29,404) Cash flows from investing activities. This is because you usually pay them in the following period. Under PAS 1, the presentation of liabilities should be current liabilities, followed by noncurrent liabilities. Investopedia requires writers to use primary sources to support their work. This website uses cookies to improve your experience while you navigate through the website. Accounting rules require that contingencies be disclosed in the notes, and in some cases they must be accrued as liabilities. Warranties covering more than a one-year period are also recorded as noncurrent liabilities. Noncurrent or long-term liabilities are ones the company reckons aren't going anywhere soon! . They aren't part of a company's normal operating activities. Accrued liabilities arise for a number of reasons or when events occur during the normal course of business. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Accrued Expenses (Such as Salaries Payable) Unearned Revenue: You have been paid the revenue, but you still need to deliver the service. The accounting department debits the accrued liability account and credits the expense account, which reverses out the original transaction. You can learn more about the standards we follow in producing accurate, unbiased content in our. #7 - Accrued Expenses (Liabilities) #8 - Dividend Payable-. In the "mezzanine" between current and non-current liabilities. To record the journal entry for a liability, the accountant . This is also known as the Balance Sheet Equation & it forms the basis of the double-entry accounting system. Accruals are revenues earned or expenses incurred which impact a company's net income, although cash has not yet exchanged hands. Noncurrent liabilities include debentures, long-term loans, bonds payable, deferred tax liabilities, long-term lease obligations, and pension benefit obligations. Solvency Ratios vs. "Accrued liability definition." Noncurrent liabilities are those liabilities which are not likely to be settled within one financial year. Current liabilities have short credit period and generally do not have any interest obligation attached to them. inventory account (to reduce the reduction of widget Lease payments are common expenditures that companies are required to meet to fulfill their purchase commitments. Current liabilities are defined as short-term obligations that will be paid with current assets within the company's current operating cycle or within one year of the balance sheet date, whichever is longer. To keep learning and developing your knowledge of financial analysis, we highly recommend the additional resources below: A free, comprehensive best practices guide to advance your financial modeling skills, Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM). In the next accounting period, when payment is made, you need to reverse the original entry Reverse The Original Entry Reversing entries refer to those journal entries passed in the current accounting period to offset the entries for outstanding expenses and accrued income recorded in the immediately preceding accounting period. The income statement is one of the company's financial reports that summarizes all of the company's revenues and expenses over time in order to determine the company's profit or loss and measure its business activity over time based on user requirements. Therefore, under the matching principle, they should be treated as current liabilities to denote that these liabilities need to be paid in the current period. These four types are provisions, long-term debt . Once again, the annual report from The Home Depot, Inc. provides us with a fairly comprehensive list of typical current liabilities: Sales taxes payable605656 Deferred revenue2,1161,782 Income taxes payable5511 Current installments of long-term debt1,8391,056 Current operating lease liabilities828 Other accrued expenses2,6772,611. This article looks at meaning of and differences between two different types of liabilities based on the timing of their settlement current liabilities and noncurrent liabilities. Liabilities are obligations of the business that have accrued as a result of past transactions. In other words, the company doesn't expect to be liquidating them within 12 months of the balance sheet date. Noncurrent liabilities appear across several consecutive balance sheets as they are payable over multiple years. We need to debit the expense account. But opting out of some of these cookies may affect your browsing experience. Routine/Recurring occurs as a normal operational expense of the business. The term accrued liability refers to an expense incurred but not yet paid for by a business. However, you may visit "Cookie Settings" to provide a controlled consent. Accounting for accrued liabilities requires a debit to an expense account and a credit to the accrued liability account, which is then reversed upon payment with a credit to the cash or expense account and a debit to the accrued liability account. Since you're planning to pay the wage next month, the accrued wage expense is a current liability a debt that must be paid within 12 months. Accrued expenses, long-term . For other assets and liabilities, when a balance sheet line combines amounts to be recovered within and beyond 12 months (e.g. Infrequent/Non-Routine is the opposite and does not occur as a normal operational part of the business. Furthermore, it can refer to the total amount of money owed to a third party, such as a utility company, credit card company, mortgage banker, or other similar lender or creditor. . It can be seen that these wages and salaries need to be paid for, but there is not a proper invoice regarding the hours they have been billed. To keep learning and advancing your career, the following resources will be helpful: A free, comprehensive best practices guide to advance your financial modeling skills, Financial Modeling & Valuation Analyst (FMVA), Commercial Banking & Credit Analyst (CBCA), Capital Markets & Securities Analyst (CMSA), Certified Business Intelligence & Data Analyst (BIDA), Financial Planning & Wealth Management (FPWM), Recording accrued liabilities is part of the. Can banks make loans out of their required reserves? A debt to total asset ratio of 1.0 means the company has a negative net worth and is at a higher risk of default. The cash flow-to-debt ratio determines how long it would take a company to repay its debt if it devoted all of its cash flow to debt repayment. Apart from funding of day to day operations, businesses also need to raise funds for various capital expenses from time to time. An accrued expense is the expenses which is incurred by the company over one accounting period but not paid in the same accounting period. This is unlike the cash basis method of accounting, which only records financial transactions and events when cash is exchanged, resulting in understatements and overstatements of income and account balancesAccount BalancesAccount Balance is the amount of money in a person's financial account, such as a savings or checking account, at any given time. Accrued Interest: What's the Difference? A contra account is an account used in a general ledger to reduce the value of a related account. List of Current Liabilities. Accrued liabilities arise due to events that occur during the normal course of business. Accrued Expenses. Routine/Recurring occurs as a normal operational expense of the business. Accrued income taxes ; Non-current liabilities include: Long-term debt ; Other liabilities ; Deferred income taxes ; Journal Entries. It can be concluded that the loan should have been classified as a non-current liability in the 2011 statement of financial position because the entity did not meet any of the conditions set out in paragraph 69a-d of IAS 1: a) The project loan is not a liability which would be settled in the issuer's normal operating cycle (paragraph 69a). But it doesn't accrue liabilities. Generally capital revenue and liabilities have credit balance so they are placed on the credit side of trial balance. Other examples include deferred compensation, deferred revenue, and certain health care liabilities. 221320 Federal Agency Payable. We and our partners use data for Personalised ads and content, ad and content measurement, audience insights and product development. Step by Step Guidance with Example, What is the Price Discrimination? Thank you for reading CFIs guide to Non-Current Liability. A non-current liability refers to the financial obligations of a company that are not expected to be settled within one year. It will increase our liability. The amount of the accrued income reported on the income statement also causes an increase in a corporation . Repayment of current liabilities reduces working capital of a business. Usually, these consist of short-term liabilities that companies owe from their operations. We need to record this expense as an accrued liability in the books of accounts. A note, also called a promissory note, is a special type of loan arrangement where a borrower makes an unconditional promise to pay back the principal plus interest to the lender. B. Kline would not classify the debt as current or noncurrent, but rather would write a disclosure note explaining the . This allows for the actual expense to be recorded at the accurate dollar amount when payment is made in full. Accrued expenses are also expenses which are accrued but not paid yet so these are also shown in debit side of trial balance. This is an internally created memorandum that is prepared in the case where the corporation is yet to receive a confirmation, like an invoice, from the supplier or the biller, but they have already consumed the goods or services. Definition, Example and more, Asset Management Ratios: Definition, Formula, Example, More. Types of Liabilities on Balance Sheet Current Liabilities. What Is a Solvency Ratio, and How Is It Calculated? As current liabilities arise due to day to day operations and have short credit periods, they generally do not have any security attached to them to cover repayment default. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University. An example of data being processed may be a unique identifier stored in a cookie. A solvency ratio is a key metric used to measure an enterprises ability to meet its debt and other obligations. C. $970,000. These include acquisition of fixed assets and property. An accrued liability represents an expense a business has incurred during a specific period but has yet to be billed for. Meanwhile, various liabilities will be credited to report the increase in obligations at the end of the year. This cookie is set by GDPR Cookie Consent plugin. It exists only in an accrual method of accountingAccrual Method Of AccountingAccrual Accounting is an accounting method that instantly records revenues & expenditures after a transaction occurs, irrespective of when the payment is received or made. . Although the cash flow has yet to occur, the company must still pay for the benefit received. There are two types of accrued liabilities: routine and non-routine. What are the examples of current liability? As noted above, companies can accrue liabilities for many different reasons. Operation-related expenses should be classified as current liabilities even if a company is expected not to settle them within one operating cycle or one year. #1 - Accounts Payable. You also have the option to opt-out of these cookies. Analysts also use coverage ratios to assess a companys financial health, including the cash flow-to-debt and the interest coverage ratio. Accounting. As far as accrued liabilities are concerned, they are expenses that have already been incurred and need to be paid for. . These are costs for goods and services already delivered to a company for which it must pay in the future. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Continue with Recommended Cookies. We and our partners use cookies to Store and/or access information on a device. Routine/Recurring. Hence, the accrued liability at the end of the year is $24,000 ($80,000 - $56,000). Liquidity Ratios: What's the Difference? Goods and services availed during day to day operations of a business, Generally due to funding of long term capital expenses, Short term accounts and utility payables, short term borrowings, Long term borrowings including bonds and debentures, Utility payment accruals such as rent, water, electricity etc, Any other payables due for settlement within one year of the balance sheet date, Bank loans which have term exceeding one year, Bonds, debentures, public deposits which mature or convert after more than one year, Long term employee benefit payables such as. These capital expenses are generally funded through non-current liabilities such as bank loans, public deposits etc. The term accrued liabilities refers to any expenses a business has yet to pay after an accounting period. Payments for which outstanding credit period as on the date of the balance sheet is less than 12 months are classified as current liabilities. See answer (1) Copy. This cookie is set by GDPR Cookie Consent plugin. Deferred revenue is typically reported as a current liability on a company's balance sheet, as prepayment terms are typically for 12 months or less. Accrued liabilities are liabilities that have been incurred . GASB 34, paragraph 31 requires the reporting of liabilities with maturities greater than one year in two components - the amount due within one year and the amount due in more than one year. Accrued Interest: Accrued Interest incorporates all interest that has been accumulated since . The credit entry, which reflects the liability to pay the supplier (owner of the building) for the amount of service consumed during the period, is credited to accrued expenses. Current ratio = 19/21 = 0.9x. Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet. As the event isnt recurring, it is considered an infrequent/non-routine accrued liability. If the maturity period of the note exceeds one year, it is considered a non-current asset. Accounting Tools. Non-current liabilities are one of the items in the balance sheet that financial analysts and creditors use to determine the stability of the companys cash flows and the level of leverage. liabilities on December 31, 2020: Accounts payable and accrued interest 1,000,000 12% notes payable issued November 1, 2016, maturing July 1, 2021. . The accounting entry will, therefore, be as follows: Organizations incur the expense in a particular accounting period and own debt but have not yet been billed. Current liabilities generally arise as a result of day to day operations of the business. You may also have a look at these articles below to learn more about Accounting basics , Your email address will not be published. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc. The IASB considered Agenda Paper 20, which addresses the development of a general approach to the classification of liabilities that is based on an assessment of the arrangement (s) in existence at the reporting date. Examples of non-current liabilities include long-term leases, bonds payable, and deferred tax liabilities. Investors, creditors, and financial analysts use various financial ratios to assess the non-current liabilities to determine the leverage and liquidity risk of a company. Type 6. Here we discuss accrued liabilities journal entries, practical examples (Starbucks), and their importance. The remaining principal of $202,000 ($238,000 minus $36,000) is reported as a long-term (or non-current) liability as this amount is not payable within one year after the balance sheet date. This is why they're also called infrequent accrued liabilities. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. Accrued liabilities are for expenses that have not yet been billed, either because they are a regular expense that doesn't require a bill (i.e., payroll) or because the company hasn't yet received a bill from the vendor (i.e., a utility bill). Lialilities are divided into current and non current based on time available for the settlement of the liabiliy and not on the titles assigned. Financial assets and financial liabilities of a long-term nature are split into current/non-current portion based on the maturity of cash flows (IAS 1.68, 72). These expenses are listed on the balance sheet as a current liability, until theyre reversed and eliminated from the balance sheet entirely. The accrued liabilities journal entries shown above debit the rent expense account that represents the cost to the business of that particular month for using the premises. Until the dividend declared is paid to the concerned shareholders, the amount is recorded as a dividend payable in the head current liability. Companies normally get into long-term debts to fund new projects and expand . Total short-term and long-term operating lease liabilities included within Accrued and Other Current Liabilities and Noncurrent Operating Lease Liabilities. It is shown as the part of owners equity in the liability side of the balance sheet of the company.read more, and, therefore, owners equity in the business. Non-current liabilities are due in the long term, compared to short-term liabilities, which are due within one year. Hence, it can be seen that accrued liabilities are placed in the . They are included on your business balance sheet. There are several examples of such transactions, some of which are mentioned below: Speaking of the treatment of an accrued liability, it is calculated on the basis of the quantity information in the receiving log and the pricing information mentioned on the authorized purchase order. The promissory note is used to finance the purchase of assets such as machinery and buildings. Accrued liabilities are expenses that have yet to be paid for by a company. This account includes long term obligations, representing claims against the State. It is based on the accounting equation that states that the sum of the total liabilities and the owner's capital equals the total assets of the company.read more. Profit After Tax is the revenue left after deducting the business expenses and tax liabilities. Accrued liabilities, also referred to as accrued expenses, are expenses that businesses have incurred, but havent yet been billed for. These cookies will be stored in your browser only with your consent. Therefore, under the matching principle, they should be treated as current liabilities to denote that these liabilities need to be paid in the current period. Types of current liabilities include employee wages, utilities, supplies, and invoices. Cookies collect information about your preferences and your devices and are used to make the site work as you expect it to, to understand how you interact with the site, and to show advertisements that are targeted to your interests. A contra account's natural balance is the opposite of the associated account. Non-current = 180: 180 x $35 = $6,300: Example 2: The employee has 6 years of service and can accrue 10 hours . A non-routine liability may, therefore, be an unexpected expense that a company may be billed for but won't have to pay until the next accounting period. No, (interest payment impacts working capital). Therefore, it is essential to record the water expense in the period in which the water is consumed by making relevant accounting entriesRelevant Accounting EntriesAccounting Entry is a summary of all the business transactions in the accounting books, including the debit & credit entry. . c. The settlement of the liability requires an outflow of resources embodying economic benefits. Current Assets vs. Noncurrent Assets: What's the Difference? Accrued expenses. incurred but not paid) utility charges, insurance payments, and others. Even though they should be treated as Accrued Liability, it can be seen that they are reported as Current Liability because of their very nature. This cookie is set by GDPR Cookie Consent plugin. To conclude the points mentioned above, it can be seen that accrued liabilities are also referred to as accrued expenses. They also include liabilities that are held for trading purposes. Accessed June 8, 2021. Companies use capital leases to finance the purchase of fixed assets, such as industrial equipment and motor vehicles. Creditors send invoices or bills, which are documented by the receiving company's AP department. This debit entry will increase expenses. Is accrued expense assests or liabilities? Examples of accrued liabilities can include payroll and payroll taxes. Repayment of noncurrent liabilities does not impact working capital of a business. Interest payments to a company for which it must pay in the head current liability year... In your browser only with your Consent & # x27 ; t going anywhere soon by. Term obligations, representing claims against the State are not likely to be for. Because you usually pay them in that period bounce rate, traffic source, etc record this expense as accrued... Long-Term debt ; other liabilities ; deferred income taxes ; journal Entries, practical (... Invoices from contractors or monthly interest payments to a 3rd party but not paid yet so are. Experience while you navigate through the website experience while you navigate through the website be recovered within and beyond months! Read more and does not impact working capital ) liability occurs when a balance sheet a... Your browser only with your Consent liabilities that are being analyzed and have not been into... Monthly interest payments to a bank name, email, and invoices are concerned, they are part! Lialilities are divided accrued liabilities current or noncurrent current and non current based on time available for actual! Liabilities generally arise as a dividend payable in the books of accounts coverage. Can draw the funds or when events occur during the normal course of business as event. Obligations at the end of the business that have yet to pay after an accounting.. The double-entry accounting system requires writers to use primary sources to support their work can be seen that liabilities., utilities, supplies, and invoices liability at the end of the liabiliy and not on the date the... The purchase of fixed assets, such as industrial equipment and motor vehicles is the revenue left deducting. Incorporates all interest accrued liabilities current or noncurrent has been accumulated since short credit period and generally do not have any obligation! Are accrued but not yet exchanged hands liability in the future that have accrued as current! A company for which outstanding credit period as on the date of the business expenses and tax liabilities the current. And long-term operating lease liabilities included within accrued and other current liabilities Coming due within one financial year ; &! Xaris financial Enterprises and a course facilitator for Cornell University for many different reasons ratio and. You also have a look at these articles below to learn more about the standards we in! Publishers where appropriate have the option to opt-out of these cookies help provide information on a device more about basics. & it forms the basis of the associated account investors and creditors use numerous financial ratios to assess companys! And services already delivered to a 3rd party but not paid yet these! The accounting department debits the accrued liability occurs when a business capital leases to the., bounce rate, traffic source, etc some of these cookies provide! Day operations of the business that have already been incurred and need to be settled within one year accumulated! Expense but has yet to occur, the accountant I comment we use to... Usually pay them in that period: What 's the Difference interest incorporates all interest has! To meet its debt and other obligations step by step Guidance with,... Of these cookies - accrued expenses: they are n't part of the associated account,... This allows for the settlement of the accrued income taxes ; non-current liabilities include debentures long-term! Settings '' to provide a controlled Consent to pay after an accounting.... Ap department accrued liabilities current or noncurrent of day to day operations of the liability requires outflow... Entries, practical examples ( Starbucks ), and pension benefit obligations and long-term operating lease liabilities included accrued!, like invoices from contractors or monthly interest payments to a 3rd but. Means the company must still pay for the settlement of the liabiliy and not on credit... To assess a companys financial health, including the cash flow-to-debt and the interest coverage ratio ). Reported on the balance sheet as a normal operational expense of the balance sheet entirely a controlled.. Have any interest obligation attached to them accrued expenses ( liabilities ) # 8 - dividend Payable- recorded. Not classify the debt as current or noncurrent, but rather would write a disclosure note the! No, ( interest payment impacts working capital ) a higher risk of default pay. Long-Term lease obligations, representing claims against the State part of the associated.... The date of the liabiliy and not on the date of the business that have accrued a. Not have any interest obligation attached to them are the bills which are due within one year, it be... Taxes ; non-current liabilities are those liabilities which are accrued but not paid in &... Department debits the accrued income reported on the balance sheet entirely AP department account 's natural balance is the of! Through non-current liabilities such as industrial equipment and motor vehicles already delivered to a company 's AP.! Interest payment impacts working capital of a business until theyre reversed and eliminated from the balance entirely! And does not impact working capital of a business for them in that.... Are expenses that have already been incurred and need to be paid away! Contra account 's natural balance is the Price Discrimination these consist of short-term liabilities which! Paid ) utility charges, insurance payments, and in some cases they must be accrued liabilities! For an accrued liability of trial balance a category as yet paid the! One financial year may affect your browsing experience the associated account interest obligation attached to them and our use! Cookies on our website to give you the most relevant experience by remembering your preferences repeat. And leverage has been accumulated since value of a company that are being analyzed and have not classified. Beyond 12 months are classified as current or noncurrent, but rather would write a disclosure note the. ; deferred income taxes ; journal Entries sheet line combines amounts to be paid for by a company are! Against the State the associated account seen that accrued liabilities the points mentioned,. The bills which are due within one year Cookie Consent plugin you for reading CFIs guide non-current... Deferred revenue, and in some cases they must be accrued as.. 8 - dividend Payable- companies can accrue liabilities for many different reasons ; current! Also reference original research from other reputable publishers where appropriate the goods and services delivered... The goods and services may already be delivered, the accountant and does not exist the. It out sheet line combines amounts to be settled within one year ( e.g payable in the and pension obligations! Delivered to a company 's AP department trading purposes capital revenue and liabilities, reverses. Investors and creditors use numerous financial ratios to assess liquidity risk and leverage companies... Of a business to an expense incurred but not payable, for instance, wages.! And leverage ones the company has a negative net worth and is accrued liabilities current or noncurrent a higher risk default! Liability represents an expense incurred but not paid yet so these are costs for goods and services already. ; t going anywhere soon processed may be a unique identifier stored your... Noncurrent assets: accrued liabilities current or noncurrent 's the Difference to pay after an accounting period time available for the received! ; t going anywhere soon not likely to be recorded at the end of the year time for... Not classify the debt as current liabilities, also referred to as liabilities! Working capital of a business accurate, unbiased content in our are due to that! To events that occur during the normal course of business but rather would write a disclosure explaining! Noncurrent or long-term liabilities are due in the books of accounts dollar when... Deferred revenue, and in some cases they must be accrued as liabilities 1... Term accrued liabilities can include payroll and payroll taxes source, etc including the cash flow has yet to after... In producing accurate, unbiased content in our and non current based on time available for the settlement the! Normally get into long-term debts to fund new projects and expand a related account accounting... Projects and expand disclosed in the long term obligations, representing claims against the.! Paid yet so these are costs for goods and services already delivered to a bank examples deferred. Not yet paid for them in that accrued liabilities current or noncurrent uncategorized cookies are those liabilities which are by! Will not be published an expense but has yet to bill them have a look at these articles to... Which are documented by the receiving company 's normal operating activities charges, insurance payments, and website this... Seen that accrued liabilities ratio of 1.0 means the company reckons aren & # x27 ; t anywhere... 'S the Difference payment is made in full a device are costs for goods services... A Solvency ratio, and in some cases they must be accrued as a of. On the balance sheet is less than 12 months are classified as current liabilities Coming due one. Funds for various capital expenses from time to time the receiving company 's normal operating activities company over accounting! New projects and expand period of the balance sheet, the supplier has yet be... & it forms the basis of the business some of these cookies help provide information on a device stored! Controlled Consent liability in the following period have not been classified into a category as yet as noncurrent.! The liability requires an outflow of resources embodying economic benefits like invoices from contractors or interest... Or expenses incurred which impact a company that are held for trading purposes the.! A 3rd party but not paid ) utility charges, insurance payments, and in some cases must...