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Let’s understand the detailed component in the liabilities side of a Balance Sheet:
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WHAT ARE CURRENT LIABILITIES? |
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Current liabilities are obligations/liabilities:
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Current Liabilities |
Description |
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Accounts payable |
Claims of suppliers arising from their providing goods or services to the entity for which they have not been paid |
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Accrued expenses |
Amounts earned by outside parties but have not been paid by the entity |
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Deferred revenues |
Liabilities that arise because the entity receives advanced payments for services it has agreed to render in the future |
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Taxes Payable |
Amount owed to government agencies |
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Other Creditors |
Amounting owing by the entity to non-Accounts payables like staff and others |
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Short term loan |
Debts that are payable within 12 months of the balance sheet date |
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