Current Liabilities - Bookkeeping

 

Current Liabilities - Bookkeeping 

2023 - SWR Bookkeeping - Appendix2 - 3 marks

  

• Also called Short term liabilities   

• Period: Less than a Year. (Long-term liabilities - More than a Year)

• The difference between Current Assets and Current Liabilities is Working Capital 

• Current Ratio = Current Assets / Current Liabilities  

• Settled using Current Assets

• Shows on Balance Sheet Left Side i.e., Capital & Liabilities side.  

• Examples: Bank Loans, Dividends payable, Bills Payable, Income Tax due, Interest payable on Long term loans, Outstanding expenses, etc. 

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