Liabilities are claims to resources of a company and play an important role in liquidity and prXXXXXXXXXXX of a XXXXXXX XX they XXX sources XX cash when they XXX XXXXXXXX. These are present XXXXX obligations that XXXXXXX XXXXXXXX in the form XX XXXXXX or services in XXXXXX XXX XXX the XXXXXX XX XXXX XXXXXX. These liabilities XXX XXXXXXXX XX balance sheet in XXX form XX XXXXX-term XXX long-XXXX XXXXXXXXXXX.
XXXX No. X Elements of Financial XXXXXXXXXX XXXXXXXXX the XXXXX XXXXXXXXX XXXXXXXXXXXXXXX of liabilities. Liabilities XXX probable XXXXXXXXXX XX economic resources in future. They are XXXXXXX XXXXXXXXXXX XXX settled by transferring assets or proving XXXXXXXX in XXXXXX. XXXXX XXXXXXXXXXX are the XXXXXX XX past transactions are XXXXXX.
Liabilities XXX classified as short-term or XXXXXXX XXXXXXXXXXX XXX XXXX-XXXX or XXX-XXXXXXX liabilities. Short-term XXXXXXXXXXX XXX XXXXX XXXXXXXXXXX that XXX XXXX XXXXX cash or XXXXX and XXXXXXXX XXXXXX XXX XXXX or operating cycle whichever is longer. XXXX of XXX examples of short-term liabilities XXXXXXX accounts XXXXXXX, short-term note payable, salaries XXX XXXXX payable, income taxes payable XXX.
XXX liabilities other than sort-term liabilities XXX classified XX long-term liabilities. XXXXXXXX XXXXXXX XXXX-XXXX notes XXXXXXX, bonds XXXXXXX XXX.
U.S XXXX requires XXXX the financial XXXXXXXXXX XXX XX be prepared XXXXXXXXX to XXXXXXX basis XXX XXX information related to XXXXXX and liabilities XX to XX presented in the order of XXXXXXXXX and maturity and therefore it XX important XX XXXXXXXX the liabilities as XXXXX or XXXX-XXXX liabilities.
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XXXXXX-XXXXXX, T., XXXXXXXX, B., & XXXXXXXXX, X. X. (XXXX). XXXXXXXX's accounting (XXXX ed.). XXXXXX, XX: Pearson.
FASB (XXXX) Statement XX Financial Accounting Concept No. 6, Elements XX XXXXXXXXX Statements
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