Liabilities Explained Current and Non-current Liabilities

What are liabilities, and how are they shown in a Statement of Financial Position? In this lesson, we return to Ellie’s Cupcake Shop to explore the amounts a business owes and learn how liabilities are classified. You will learn: 🧁 what a liability is 🧁 the difference between current and non-current liabilities 🧁 examples of liabilities belonging to Ellie’s Cupcake Shop 🧁 why the repayment period affects how a liability is classified 🧁 where liabilities appear in a Statement of Financial Position Current liabilities are amounts that a business expects to pay within 12 months. Non-current liabilities are amounts that are due after more than 12 months. Use the accompanying learning resources to strengthen your understanding: 📘 Liabilities Knowledge Organiser ✏️ Liabilities Revision Sheet ✅ Liabilities Revision Sheet Answer Sheet Download the resources here: Liabilities Knowledge Organiser: https://drive.google.com/file/d/1SueT... Liabilities Revision Sheet: https://drive.google.com/file/d/11Si6... Liabilities Answer Sheet: https://drive.google.com/file/d/1OIOf... This lesson is suitable for Business and Accounting students, including those studying GCSE, BTEC, AAT, T Level or A-level courses, as well as anyone learning the basics of business finance. This video forms part of the Statement of Financial Position playlist from Ellie’s Cupcake Shop. Subscribe for short, friendly lessons that make Business, Accounting and business maths easier to understand. #Liabilities #StatementOfFinancialPosition #AccountingBasics