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

June 3rd, 2006 Comments off
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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

 

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Financial Accounting

 
 

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