Page 44 - Demo samer flip book

Investopedia.com – the resource for investing and personal finance education.
• The specific nature and performance of investments - Have investment sales created one-time gains?
• Goodwill impairments - Has goodwill been impaired, and what is the business implication going forward?
Long-Term Liabilities
Long-term liabilities are company obligations that extend beyond the current year, or alternately, beyond the current operating cycle. Most commonly, these include long- term debt such as company-issued bonds. Here we look at how debt compares to equity as a part of a company's capital structure, and how to examine the way in which a company uses debt.
The following long-term liabilities are typically found on the balance sheet:
You can see that we describe long-term liabilities as either operating or financing. Operating liabilities are obligations created in the course of ordinary business operations, but they are not created by the company raising cash from investors. Financing liabilities are debt instruments that are the result of the company raising cash. In other words, the company--often in a prior period--issued debt in exchange for cash and must repay the principal plus interest.
Operating and financing liabilities are similar in that they both will require future cash outlays by the company. It is useful to keep them separate in your mind, however, because financing liabilities are triggered by a company's deliberate
This tutorial can be found at: http://www.investopedia.com/university/financialstatements/ (Page 44 of 66)
Copyright © 2004, Investopedia.com - All rights reserved.