Posted by: slang in Balance Sheet
In this Part 3, let’s look at what are really long term liabilities in a typical Balance Sheet:
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LONG TERM LIABILITES ARE:
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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
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SUMMARY: TO RECAP FOR LIABILITIES SIDE OF THE BALANCE SHEET
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Balance Sheet And Its Liabilities Side (Total Liabilities) consists of :
Current Liabilities +Long Term Liabilities
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This entry was posted on Saturday, November 3rd, 2007 at 5:40 am and is filed under Balance Sheet.
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