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Is a long term loan repayable in 6 years a non current asset or non current liability?
Wiki User
∙ 14y ago
It is a loan repayable. Hence it is a liability. As the liability is for more than one year, it is non current liability.
Wiki User
∙ 14y ago
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Is a bank loan a long term liability?
That depends, how much is the bank loan, how long is the loan for. Most times YES it would be a long term liability.One sure way of knowing whether it is long term or current. Long Term is a loan or payable that will not be paid off in one years time. Current is one that will be paid off in one years time or LESS!Just rememberCurrent Liability -Account Payable (short term) - 12 months or lessLong Term Liability -Note Payable (long term) - 1 year or moreNote... Liabilities that are short term are listed under current liabilities, Current Liability is the Balance Sheet category for a Short Term Liability.
Why fixed assets depreciate?
Fixed assets depreciate because through depreciation process cost of fixed asset charged to all those fiscal years in which that fixed asset is used.
What does obsolete asset means?
It is an Asset which has nominal value or has lost its value due to depreciation or wear and tare or redundency of the asset. If a Vehicle is completely out of function, without an engine and has no market value, it can be called an obsolete asset. aditional: it can also be an asset with for example a 5 year depreciation schedule that for technical reasons has become useless to the operation at the end of three years due to technical advances, lack of support due to the vendor going under or other special cases. Depends on the business format and the tax code.
How many years does it take before you can drop a private mortgage insurance?
It's not a matter of time. When you have equity of 20% or more of the total asset, you can petition the mortgage provider to drop its requirement for the insurance.
What are the current mortgage rates offered by ING Direct?
The current Mortgage rates offered by ING direct begin at 3.00% for a 5 year Variable. The fixed mortgage rates are 3.09% for 1 year, 3.25% for 2 years, 3.49% for 3 years, 3.45% for 4 years, 3.45% for 5 years and 4.49% for 10 years. A Home Equity Line of Credit will run 3.65%.
What is the account classification for mortgageWhat is the account classification for mortgage on buildings (repayable in 10 years) on buildings (repayable in 10 years)?
Non current liability
What is the rule for classifying a liability as current?
A current liability is one that is due within a year. Anything after a year is a mon current liability. If however part is due within a year and the rest in later years such as a bank loan then you should show the amount that is due in a year as current and the rest as non current.
A current asset may be cash or must be capable of being converted into cash with a relatively short period of time usually less than five years?
You have the first part right, current assets is cash or anything that can be converted to cash in a short period of time, however, that is "not" five years, a current asset must have the ability to convert into cash within ONE YEAR or LESS. Anything above one year is a fixed or long-term asset, not a current asset.
What is future deductible amount?
Future deductible amount for tax purposes represent the allowable tax deductions in future years in respect of an asset or liability.
Is software considered a fixed asset?
if software is purchased and price is paid at once and used for many years then it is fixed asset but if you purchase a software and after that every year you need to renew the license of using that software then this lisence cost is current asset and price paid for purchasing software is fixed asset. For Example: software purchased for $1000 and lisence renew fee for every year is $100 then $1000 is fixed asset and $100 is current asset or revenue asset.
my mothers home of 30 years is now said to be a liability rather then an asset. she has worked her whole life for this house and sense my father died unexpectedly about 5 years ago she has been struggling greatly. well i guess what i want to know is if th?
my father died approxamently 5 years ago, my mother has sense taken out a second morgage on her home and has now recently been informed that her home is no longer an asset but rather a liability. is there a grant out there to help my mother keep her home of 30 years?
Is a bank loan a long term liability?
That depends, how much is the bank loan, how long is the loan for. Most times YES it would be a long term liability.One sure way of knowing whether it is long term or current. Long Term is a loan or payable that will not be paid off in one years time. Current is one that will be paid off in one years time or LESS!Just rememberCurrent Liability -Account Payable (short term) - 12 months or lessLong Term Liability -Note Payable (long term) - 1 year or moreNote... Liabilities that are short term are listed under current liabilities, Current Liability is the Balance Sheet category for a Short Term Liability.
Why are leases a non current liability?
Lease agreements are generally made for more than one fiscal years that's why these are non-current liabilities.
Should a deferred expense or deferred rent in this example be classified as 'Long Term Liability'?
Deferred Expenses are on the asset side of the balance sheet, not the liability side. Long Term relates to anything beyond the next twelve months, but a long term deferred expense would probably be listed as "Other Assets". The deferred expenses are correctly represent the Assets of the company. But, if a company has not paid its rent & its due in next 12 month or may be due on virtual payment basis in 2-3 years, then such expense (deferred rent) is required to be shown on Liability side of the B/S. Furthermore, such payments to be made in next 12 months are to be presented as Current Liability & payments to be expelled in more than 12 months are to be shown as Non-Current Liability Section.
Why are some receivables classified as non current asset?
A current asset is an asset that is used up quickly or easily converted to cash. For example supplies are current assets, many receivables are "current" assets, however, if a receivable is a large amount and the company doesn't expect to receive the full payment quickly (usually within one accounting period or one year) then the receivable is classified as a non-current asset.For example if you are a finance company and you loan money to a customer to buy a car and the financing period is for 5 years, this account is a non-current asset.This is similar to Current Liabilities and Long-Term Liabilities.
What is the difference between non-current and current liabilities with examples?
The only different is when the liability becomes due. So current liabilities are within a year and non current is after one year. Current liabilities would be things like Corporation tax, VAT, payroll taxes, trade creditors (accounts payable). Non current liabilities could be things like long term loans, long term debentures, hire purchase schemes. With long term liabilities, there may be an aspect of it that's due within a year and the rest in later years, such as for instance, a 4 year Loan. In that case you would show 1 year in current liability and 3 years in non current liability. This allowes users to see actually what is due in one year.
Sample papers of asset of ten years of class4?
samples of asset test papers for class 4
