Accounting For Liabilities And Stock Equity

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The sources section of the balance sheet has two main sections and several subsections. The basic division is between liabilities and stockholders’ equity. Liabilities are the obligations of the organization. The terms of these obligations are generally fixed by legal contract and have definite due dates. Stockholders’ equity refers to the ownership interest in a corporation. The amount of the stockholders’ interests is not fixed by contract, and does not have due dates. The liability section can be further divided on the basis of due dates between current liabilities and noncurrent liabilities.
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May 22, 2013
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701.8 KB
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