Question

What are some current or long-term liabilities a clothing retailer would have with example dollar amounts?

Please list a minimum of 5 either or both long term or short term liabilities of your business and amounts.

Answer 1

Current liabilities:
--Accounts payable: It includes the trade payables due to suppliers ($1500)
-- Customer deposits: It includes the advance payments made by customers for the of the completion of their cloth orders ($1900)
--Sales taxes payable: It is the obligation of a clothing retailer to remit the sales taxes to the government that a clothing retailer charged to customers on behalf of the government ($2500)
--Accrued expenses. These expenditures are not yet payable to a third party, however already incurred, such as wages payable ($550)
--Short-term loans: The loans which are due on demand or within the period of 12 months ($8000)

Long-term liabilities
--Long term business loan: A loan (such as mortgages, car payments) which is repayable by the clothing retailer after 12 months along with interest will be included in long-term liabilities ($100,000)
--Deferred tax liability: It represents income tax payment a a clothing retailer saved today however which it shall be required to pay in future because of the difference between tax laws and financial accounting recognition criteria ($18,000)
-- Capital leases: The capital lease by clothing retailer will be treated as long term liability ($30,000)
--Deferred compensation: An arrangement with an employee wherein a portion of an income of an employee is paid out at a later date after which the income was earned. ($5000)
--Deferred revenue: It is a payment received in advance for clothes that are to be delivered in the future. ($25,000)