Chapter

Current Liabilities

Hrishikes Bhattacharya

in Banking Strategy, Credit Appraisal, and Lending Decisions

Second edition

Published in print October 2011 | ISBN: 9780198074106
Published online September 2012 | e-ISBN: 9780199080861 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780198074106.003.0009
Current Liabilities

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Current liabilities originate from current or short-term promises made to non-owners of a business, namely suppliers of goods and services, including suppliers of short-term cash. As current assets originate similarly, but on the other side of the balance sheet, it is normally expected that current liabilities are to be paid from out of current assets. This chapter discusses the origination of current liabilities, dangers of overtrading and the safety margin, and also covers important items of current liabilities — trade creditors, deposits from customers and public, inter-corporate loans and investments, bridge loans, commercial paper, and registration of charges.

Keywords: current liability; overtrading; safety margin; trade creditors; deposits; loans; investments; commercial paper

Chapter.  9294 words. 

Subjects: Financial Markets

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