long-term debtors

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*Debtors who are not expected to pay what they owe in the near future. The debtors of an organization shown on the face of a balance sheet under current assets may be assumed by some readers to be expected to pay within 12 months, thus being comparable to current liabilities. The legal definition of fixed assets, however, means that current assets are merely those assets that an organization does not mean to keep in the business and there are no time implications. In some cases, possibly by mutual agreement, it may be many years before a company is able to recover money from certain debtors. The Urgent Issues Task Force requires that if the size of the debt due after more than one year is material, the amounts should be disclosed on the face of the balance sheet.

Subjects: Accounting.

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