Generally, liabilities are classified as follows:
- Current
- Non-Current
- It is expected to be settled in the normal course of the organization's operating cycle.
- It is due to be settled within the twelve months of the Statement of Financial Position date.
Non-Current Liabilities are those liabilities which does not meet the criteria of current liabilities.
Generally, they comprise the portion payable beyond one-year of a long-term nature (usually, more than 12 months from SFP date).
Examples of Liabilities Elements
Current Liabilities Elements
- Accounts Payable
- Notes Payable
- Accrued Interest Payable
- SSS Premium Payable
- Withholding Tax Payable
Non-Current Liabilities Elements
- Long Term Payable
Normal Balance : Credit
Liability accounts has normal credit balances.
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