Who would want to know why liabilities on a balance sheet are classified as current and non-current?
Potential investors and the bankers or even the employees might be interested to know. This is because current liabilities which is due within a year would need immediate attention. Which means that the company must have enough cashflow to pay this immediate debt, if not the company would go bankrupt.
While non-current liabilities the company would have a longer time to gather enough money to pay up. If the company is profitable enough they should be able to pay up.
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