Balance Sheet And Its Liabilities Side( Part 2 of 3)

June 3rd, 2006 Comments off
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WHAT ARE CURRENT LIABILITIES?

Current liabilities are  obligations/liabilities:

  • that is expected to be settled in the normal course of the enterprise’s operating cycle ; or

  • Is due to be settled within twelve months of the balance sheet date

Current Liabilities

Description

Accounts payable

Claims of suppliers arising from their providing goods or services to the entity for which they have not been paid

Accrued expenses

Amounts earned by outside parties but have not been paid by the entity

Deferred revenues

Liabilities that arise because the entity receives advanced payments for services it has agreed to render in the future

Taxes Payable

Amount owed to government agencies

Other Creditors

Amounting owing by the entity to non-Accounts payables like staff and others

Short term loan

Debts that are payable within 12 months of the balance sheet date

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Financial Accounting

 
 

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