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Originally Posted by choclady
i hope my professor isnt like that. but our exam will only contain 20 % theory and 80 % accounts...
can i just ask you something? how do you know something is a short term liability or a long term liability? like stocks... are they short term or long term? or are they assets?
erk, i feel stupid  |
a short term liability is a liability that should be paid back within the year ie creditors etc...
a long term liability is one that is paid over many years like a loan. i dont know how u do it but say u have a 10 year 10,000 loan. the 1st year it would go down as a short term liability and u would have 9,000 in long term liabilities.
we haven't done stocks yet and i was always shit at PLC balance sheets but i've got a feeling they would go in represented by along with the cpital/ owners interest but don't quote me on that cos they just as easilly could go into assets.