#current_debts:
Liabilities are said to be expected to be settled during the entity’s normal operating cycle or within one year of the balance sheet date, whichever is longer.
Accounts & Notes Payable
Accounts payable
Payment obligations resulting from business transactions with the company are called accounts payable, in other words, the amount that must be paid for the goods purchased or services performed.
Notes payable
Debts that are documented in commercial documents such as checks and indicate the payment of a certain amount on a certain date in the future. Payable documents express the debtor’s official payment obligations and have more legal validity compared to accounts payable.
Other Accounts & Notes Payable
To any accounts and payable documents that are not classified in commercial accounts and payable documents. Such obligations arise from activities that do not include the main operations of the company.
Advances
Receiving an amount before providing a service or goods to provide them in the future is known as the company’s debt and under the title of pre-receipt of sales of products and services.
Tax payable
In case of taxable profit, the company’s income tax reserve is calculated by applying the relevant rates according to the tax laws.
Dividend payable
The debt of a joint-stock company for the declared dividend that has not been paid, whether it is due after the balance sheet date or has not yet been paid for any other reason. This debt is usually reflected as one of the current debt items in the balance sheet.
Loans payable
Financial facilities are amounts that companies borrow from banks and individuals for specific purposes. Short-term financial facilities and the current share of long-term debts that must be paid within one year from the date of the balance sheet are considered current liabilities.
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This post is written by Mahdi_kohsoltani