{"id":3999,"date":"2020-10-24T14:55:15","date_gmt":"2020-10-24T14:55:15","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-financialaccounting\/?post_type=chapter&p=3999"},"modified":"2020-12-03T18:59:22","modified_gmt":"2020-12-03T18:59:22","slug":"introduction-to-reporting-current-liabilities","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-clinton-financialaccounting\/chapter\/introduction-to-reporting-current-liabilities\/","title":{"raw":"Introduction to Reporting Current Liabilities","rendered":"Introduction to Reporting Current Liabilities"},"content":{"raw":"

What you will learn to do: Illustrate proper reporting of current liabilities<\/h2>\r\nAs we discussed earlier, the reason current assets are reported on a classified balance sheet separately from noncurrent assets is so that analysts and investors can easily compare current assets to current liabilities.\r\n\r\n[caption id=\"attachment_6147\" align=\"aligncenter\" width=\"1024\"]\"See See the balance sheets long description<\/a> here.[\/caption]\r\n\r\nThe next section of the balance sheet would be noncurrent liabilities:\r\n\r\n\"\"\r\n\r\nAs you may have guessed, comparing total assets to total liabilities, owners\u2019 equity for The Home Depot is actually a deficit. You\u2019ll study the individual aspects of corporate equity in a later module, but for now, just notice that:\r\n\r\n[caption id=\"attachment_6014\" align=\"aligncenter\" width=\"1024\"]\"See See the balance sheet long description<\/a> here.[\/caption]\r\n\r\nNotice that total liabilities (current and noncurrent) and owners\u2019 equity (called stockholders\u2019 equity for a corporation) of $51.236 billion is equal to total assets of $51.236 billion.","rendered":"

What you will learn to do: Illustrate proper reporting of current liabilities<\/h2>\n

As we discussed earlier, the reason current assets are reported on a classified balance sheet separately from noncurrent assets is so that analysts and investors can easily compare current assets to current liabilities.<\/p>\n

\"See<\/p>\n

See the balance sheets long description<\/a> here.<\/p>\n<\/div>\n

The next section of the balance sheet would be noncurrent liabilities:<\/p>\n

\"\"<\/p>\n

As you may have guessed, comparing total assets to total liabilities, owners\u2019 equity for The Home Depot is actually a deficit. You\u2019ll study the individual aspects of corporate equity in a later module, but for now, just notice that:<\/p>\n

\"See<\/p>\n

See the balance sheet long description<\/a> here.<\/p>\n<\/div>\n

Notice that total liabilities (current and noncurrent) and owners\u2019 equity (called stockholders\u2019 equity for a corporation) of $51.236 billion is equal to total assets of $51.236 billion.<\/p>\n\n\t\t\t

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Candela Citations<\/h3>\n\t\t\t\t\t
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CC licensed content, Original<\/div>