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Current Liabilities.

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Thursday First of December Two Thousand And Twenty-Two.

09.59am

3.4. Current liabilities:

Current liabilities are amounts that a business owes, or the value of obligations that it must fulfil within twelve months of  the balance sheet date. Specific elements might include:

Payables - amounts due to suppliers.

Taxation

Bank overdraft.

Pipes & Installations Ltd do not have any other current liabilities, although additional liabilities might arise in the opposite circumstances as in 'prepayments' above. For example, if an energy bill was expected but had not yet been received for a particular reporting period, an estimate of the charge would be included under this heading. This process is called 'accruing for' the expected bill, and the resulting amount on the balance sheet as an 'accrual'.

Thank you.

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