Page 8 - Finances for Non-Finance People
P. 8

STATEMENT OF


                                                                                                                 FINANCIAL POSITION



                                                                                                                       (BALANCE SHEET)








                                                                                                           Liabilities are the debts or obligations that an

                                                                                                           organization owes to others.

                                                                                                           Examples of liabilities include loans, accounts

                                                                                                           payable, salary payable and lines of credit.
                                                                                                           Think of liabilities as the things that the

                                                                                                           organization owes to others that need to be
                                                                                                           paid back.


                                                                                                           Current liabilities are generally due within one
                                                                                                           year and Long-term liabilities are due after

                                                                                                           one year.
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