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Money Bag

Unit 3 - Finance & accounts

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Chart Increasing

Unit 1 - Introduction To Business Management

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Briefcase

Unit 2 - Human Resource Management

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Direct Hit

Unit 4 - Marketing

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Factory

Unit 5 - Operations management

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Bar-Chart

Unit 6 - Assessment

🎉 Hey future business tycoon! Let&#39;s dive into the exciting world of liabilities (not as scary as it sounds!) 🎉

Imagine you borrowed a book (or a game, or some cash) from your friend. Now, you have a responsibility to give it back, right? In the business world, liabilities are just like that: they are amounts a company owes. Think of them as business IOUs!

&nbsp;

🎯 Real-World Example: Your favorite pizza place took a loan to buy a new oven. That loan? Yep, it&#39;s a liability because they owe money back!

<ul>
	<li>These are the big commitments, the ones we don&#39;t need to worry about paying back right away.</li>
	<li>Payable after 12 months.</li>
	<li>Examples include
	<ul>
		<li>🏦 Long-term bank loans: Imagine buying a big fancy house and getting a 30-year mortgage.</li>
		<li>🏠 Mortgages: Your local mall? Probably built using one!</li>
	</ul>
	</li>
</ul>

<ul>
	<li>These are like quick errands you have to run! Gotta clear them soon!</li>
	<li>Payable within 12 months.</li>
	<li>Examples include
	<ul>
		<li>🛒 Creditors: Remember that time you didn&#39;t have enough cash, so the shopkeeper said, &quot;Pay me next time!&quot;? The business owes them.</li>
		<li>🏧 Bank overdraft: Picture using your debit card even when your account&#39;s almost empty. Oops!</li>
		<li>💰 Tax owed to the government: Every business&#39;s favorite time of the year! It&#39;s like the government&#39;s birthday, and businesses have to gift them. Taxes like corporation tax fall here.</li>
	</ul>
	</li>
</ul>

<ul>
	<li>Total Liabilities = Current Liabilities + Non-Current Liabilities</li>
	<li>Net Assets = Total Assets - Total Liabilities</li>
</ul>

Now, why do we calculate net assets? Well, it&#39;s like counting all the money left in your piggy bank after paying off your IOUs!

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🔍 Big Question: How did the business finance these net assets? Stay tuned for more adventures!

<ul>
	<li>Liabilities = Business IOUs.</li>
	<li>Non-current liabilities = Long-term debts, like mortgages.</li>
	<li>Current liabilities = Short-term debts, like owing money for buying supplies.</li>
	<li>Net Assets = What&#39;s left after settling all IOUs from total assets.</li>
</ul>

 
🚀 Happy Studying! And remember, liabilities are just like borrowing a book &ndash; they&#39;re not so scary when you break them down! 🚀

Unit 3 - Finance & accounts

Unlock The Secrets Of Business Liabilities: Current Vs Non-Current Explained!

Table of content

Liabilities - what's the fuss? 🎈

Non - current liabilities (long - term liabilities) 🐢

Unlock the Full Content!

Unit 3 - Finance & accounts

Unlock The Secrets Of Business Liabilities: Current Vs Non-Current Explained!

Table of content

Liabilities - what's the fuss? 🎈

Non - current liabilities (long - term liabilities) 🐢

Unlock the Full Content!