Liabilities: Liabilities are debt and obligations of a business. These are the claims against the resources that a business owes to outsiders of the company. Liabilities may be short-term or long-term depending upon the time duration in which it is paid back to the creditors.
To report: Liabilities on the classified balance sheet.
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Horngren's Financial & Managerial Accounting, Student Value Edition (5th Edition)
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