A corporation often has liabilities – amounts owing to creditors. These liabilities must be classified on the balance sheet as current or noncurrent. Current liabilities can include known liabilities such as payroll liabilities, interest payable, and bank loans that must be paid in the near future, and estimated liabilities related to warranties, for instance. Non-current debt includes amounts owing to creditors that will be paid over many years, like some kinds of bank loans.
Learning Objectives
LO1 – Identify and explain the difference between current and noncurrent liabilities.
LO2 – Record and disclose known current liabilities.
LO3 – Record and disclose estimated current liabilities.
LO4 – Explain, calculate, and record non-current debt.
- 2894 reads
