Balance-Sheet Total refers to the total net worth of an organization, encompassing both fixed and current assets minus long-term liabilities. It is an important metric in financial reporting and is particularly relevant in the qualification criteria for small and medium-sized company exemptions.
Creditors are individuals or entities to whom an organization or an individual owes money, such as unpaid suppliers of raw materials. Effective management of creditor payments is essential for maintaining credit periods and securing prompt-payment discounts.
A liability is an obligation that a company needs to settle in the future, generally in the form of economic benefits such as money. Liabilities often result from past transactions and play a crucial role in a company's financial health by representing what it owes.
Long-term liabilities are any financial obligations or debt that are not payable on demand or within one year. These can include loans, bonds payable, mortgages, and other financial obligations.
The SCFP is a financial statement that provides a detailed picture of a company's financial health over a specific period, highlighting the changes affecting working capital and non-working capital due to significant noncurrent transactions.
