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Short-Term Liabilities
Meaning
The term short-term liabilities refers to the short-term financial obligations of companies, firms or enterprises to make the payments to these loans within one accounting period(i.e., within a year). These loans are generally taken to meet day to day working capital requirements of an organization such as the purchase of raw materials. Short-term liabilities are also known as current liabilities.
Exclusive List of Items
- Bills payable/Trade payable
- Sundry creditors
- Accrued liabilities
- Term debt
- Advances and deposits received
- Short-term obligations
- Unearned revenue
- Salaries and wages payables
- Sales tax payable
- Bank loan
- Outstanding expenses
- Merchandise accounts payable
- Deferred revenue
- Commercial paper
- Credit-card debt
- Bank overdraft
- Dividends payable
- Customer deposits
- Current portion of long-term debt
- Short-term provisions and reserves
- Accrued payroll
- Notes payable to banks
- Short-term loans and advances
- Rent payable
- Other short-term debts
Long-Term Liabilities
Meaning
The term long-term liabilities refers to the long-term financial obligations of the firms, companies or enterprise which remains due for more than one accounting period. Generally, such loans are either taken to acquire fixed assets or to make payment to a long-term debt such as payments to debenture holders. Long-term liabilities are also known as long-term debt or non-current liabilities.
Exclusive List of Items
- Long-term borrowings/debts
- Specific loans for purchasing fixed assets
- Deferred tax liabilities
- Derivative liabilities
- Pension obligations
- Capital leasing
- Car payments
- Convertible debt
- Long-term provisions and contingencies
- Bonds payable
- Pension liabilities
- Debentures
- Mortgages payable
- Public deposits
- Long-term warrants
- Long-term notes payable
- Loans from shareholders
- Lease contracts
- Post-retirement benefits reserve
- Deferred long-term liability charges
- Deferred compensation
- Other non-current liabilities