Accountancy, asked by sushmitakumari354, 1 year ago

Name some long term provision

Answers

Answered by captainkhan85
5
List of Long-Term Provision on Balance Sheet. #1 – Shareholders Capital. #2 – Long-Term Borrowings. #3 – Deferred-Tax Liabilities. #4 – Long-Term Provision. Long-Term Liabilities Example. Risk to Investors vs Long Term Liabilities.
Answered by priya2004
5








Most businesses carry long-term and short-term debt, both of which are recorded as liabilities on a company's balance sheet. (Your broker can help you find these. If you don't have a broker yet, head on over to our Broker Center, and we'll help you get started.) Business debt is typically categorized as operating versus financing. Operating liabilities are obligations that arise from ordinary business operations. Financing liabilities, by contrast, are obligations that result from actions on the part of a company to raise cash.

Long-term debt
Also known as long-term liabilities, long-term debt refers to any financial obligations that extend beyond a 12-month period, or beyond the current business year or operating cycle. Some common examples of long-term debt include:

Bonds. These are generally issued to the general public and payable over the course of several years.

Individual notes payable. These are debt instruments issued to individual investors. Payment terms might vary from note to note.

Convertible bonds. These are bonds with a feature that allows holders to redeem them for shares of common stock.

Lease obligations or contracts. Many business leases extend beyond a 12-month period, which is why they're often classified as long-term debt.

Pension or postretirement benefits. Some companies offer long-term benefits to their employees or provide them with pension payments in retirement.

Contingent obligations. These are potential obligations that may arise depending on how a future event plays out. A common example includes pending lawsuits that have not yet been settled.
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