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    Differentiate Between Operating & Financial Liabilities

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    Why is it important to differential between operating liabilities and financial liabilities?

    What is gained by reformulating the balance sheet and income statement?

    © BrainMass Inc. brainmass.com June 3, 2020, 11:29 pm ad1c9bdddf

    Solution Preview

    First, operating liabilities are obligations payable within a short period time resulting from the primary business operations of an entity. These liabilities are also non-interest bearing and includes accounts payable, accrued expenses such as accrued wages, and income taxes payable.

    Second, financial liabilities, on the other hand, ...

    Solution Summary

    The solution differentiates between operating and financial liabilities.