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14 10 2007

Know The Components in The Liabilities Side Of A Balance Sheet(Part3of3)

Posted by: slang in b. Financial Statements
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Earlier article has discussed the current liabilities, in this article readers are able to understand the other detailed components in the liabilities side of a Balance Sheet:

WHAT ARE LONG TERM LIABILITES?

 

Long Term Liabilities:

  • Is opposite of current liabilities which are more than 12 months from the date of the balance sheet.

Examples are:

  • Long term debts /fixed term loan

 

Remember that we need to classify the total debts into two(2) parts:

  • Current portion of long-term debts( amount owing within 12 months of balance sheet date and

 

  • Non-current portion namely More than 12 months of balance sheet date

 

  • Also, the current portion of the long term debts is to be classify as Current Liabilities whilst the non-current portion is in the Long Term Liabilities

 

 

 

SUMMARY: TO RECAP FOR LIABILITIES SIDE OF THE BALANCE SHEET

 

Balance Sheet And Its Liabilities Side (Total Liabilities) consists of :

Current Liabilities +Long Term Liabilities

 

This entry was posted on Sunday, October 14th, 2007 at 11:28 am and is filed under b. Financial Statements. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

One Response to “Know The Components in The Liabilities Side Of A Balance Sheet(Part3of3)”

  1. Snapshot Of Articles Covered In The Heading Of Financial Statements | MBA Accounting says:
    March 16th, 2008 at 11:08 pm

    […] Know And Understand The Components In The Liabilities Side Of The Balance(Part3) […]

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