This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
The liabilities of the company include bank Loans, salaries and benefits payable, suppliers’ bills (Payables), taxes due, etc.
Liabilities are usually sorted into Current Liabilities (short-term) falling due within one year) and Long-Term Liabilities where the payment period is greater than one year.
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Balance Sheet Equation: Total Assets = Total Liabilities + Equity |
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.