Balance Sheet-Lialibity

Lialibity

LIABILITY can be further divided into 2 parts:

  1) NON-CURRENT LIABILITY :

       Liability that must be paid off to debtors in more than one year .
  2) CURRENT LIABILITY :

      Liability that must be paid off to debtors within one year.

Components of Non-Current Liability:
  1) LONG TERM NOTE PAYABLES : 

      Money owed by company to creditors with formal agreement. Examples are

      long term borrowing, bond issued by company.
  2) DEFERRED TAX LIABILITY : 

      Tax that had been paid less in the past.

Components of Current Liability:
  1) TRADE PAYABLES :  

       Money owed by company to suppliers
  2)  NOTE PAYABLES :

       Money owed by company to creditors with formal agreement. Examples are

       short term borrowing.
  3) ACCRUED EXPENSES :

      Expenses that had been used but haven't  pay.
  4) UNEARNED REVENUE : 

      Payments received but company has not provided good or services yet.
  5) DEFERRED TAX LIABILITY :

      Tax that had been paid less in the past.