A section in the lower half of the balance sheet reflecting all forms of payables and debt. Normal presentation divides the liabilities into short-term (less than one year) and long-term liabilities (amounts due after one year).
The accounting equation is a simple formula used frequently in business. The formula is: Assets = Liabilities plus Equity OR Equity = Assets minus Liabilities The owner is interested in increasing the equity position […]
To fully grasp the concept of accounting a bookkeeper must accept that there are six (6) different types of accounts. All the reports, ledgers, journals and entries revolve around these six types of accounts. Bookkeeping […]