Explore BrainMass

Liabilities, Balance Sheet, and Full Disclosure

1. Why is it important to separate current and non-current liabilities?

2. What are the limitations of the balance sheet?

3. Does full disclosure mean more than the notes to the financial statements? Why or why not?

Solution Preview

Question 1
Current and non-current liabilities have very different characteristics. For example, current liabilities are expected to be paid within the current operating cycle. Hence, segregating it ...

Solution Summary

The solution determines the importance of separate current and non-current liabilities. The limitations of the balance sheet is discussed.