Mês: novembro 2020

Long-term liabilities cover any debts with a lifespan longer than one year. Examples would be mortgages, rent on property, pension obligations, auto loans, and any other large expense that is paid over the course of multiple years. Accounts Payable – Many companies purchase inventory on credit from vendors or supplies. For liabilities to exist, an event …

Liabilities Financial Accounting Leia mais »

All other liabilities are classified as long-term liabilities or non-current liabilities on the balance sheet. These two classifications appear in the following example balance sheet. Accrued Expenses – Since accounting periods rarely fall directly after an expense period, companies often incur expenses but don’t pay them until the next period. The current month’s utility bill is …

Short-Term Liabilities vs Long-Term Liabilities Leia mais »