Question

1 - What is the rule that used to distinguish current and long- term liabilities?

2 – Give 5 examples of intangible assets?

Answer 1

What is the rule that used to distinguish current and long- term liabilities?

Liabilities of the organisation are divided into two categories. They are 1) Current Liabilities or Short term Liabilities 2) Non-Current Liabilities or Long Term Liabilities.

Current Liabilities are the obligations of the organisation which becomes due within one year or normal operating cycle of the business.These current liabilities are generally paid with the current Liabilities. Examples for Current Liabilities are Accounts Payable, Salaries Payable, Rent Payable etc. Long Term Liabilities are the obligations of the company whcih becomes due after one year.Examples for Long term Liabilities are Leases, Long term Bank Loan, Mortgage Loans etc.

Give 5 examples of intangible assets?

Intangble Assets are the assets whcich doesn't have physical existence and are opposit the Tangible assets which have physical existence such as Land, Building, Equipment.The examples of Intangible assets are as folows.

1)Goodwill

2) Patents

3)Copyrights

4)Trademarks

5) Licenses such as business license

6) Rights such as Franchise

7) Brand Equity

8)Customer Liasts

9)Software