ACCOUNTING

CLASSIFICATION OF LIABILITIES

BEFORE WE START FROM NEW TOPIC
Let's recall again^_^

"CLASSIFICATION AND EXAMPLES OF ASSET"

ASSET- are the resources owned and controlled by the firm

There are 2 Classification of asset.
-Current assets
-Non current assets

#QUESTION
What is current asset?

CURRENT ASSETS- are the assets can be realized (collected, sold, used up) one year after year end date

Take note:
CURRENT ASSETS= SHORT-TERM ASSETS (generally, 1 year or less)
~Ibig sabihin ang current assets ay "Hindi pang matagalan"

EXAMPLE: CRIP
C- cash
R- receivables
I- inventory
P- prepaid expense

What is cash?
CASH- is the money in hand or in banks and other items considered as medium of exchange in business transaction
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Next..
RECEIVABLES- amount due from customers arising from credit sales or credit services

"Receivables" means wala pa sayo, matatanggap (mare-receive) mo palang
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Next..
INVENTORY- are assets held for resale
Ito yung mga bagay na itinitinda ng business mo
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Next..
PREPAID EXPENSE- are expenses paid in advance.
They are asset at the time of payment and become expenses through the passage of time

Ito naman yung bagay na binayaran mo muna bago mo magamit.

Take note
PREPAID EXPENSE:
~PAID but not yet incurred.
"Bayad na" pero "di pa nagagamit"
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Next...
NON-CURRENT ASSETS- are the assets cannot be realized (collected, sold, used up) one year after year end date

Take note:
NON-CURRENT ASSETS= LONG-TERM ASSETS (generally, more than 1 year)

Ibig sabihin ang non current assets ay pangmatagalan

EXAMPLE:
-Land
-Equipment
-Building

------------------(NEW TOPIC)-------------------
#DISCUSSIONS:>
Alam mo ba na ang liability ay gaya gaya sa asset.

"Bakit?"

Dahil may current at non current din ito

There are 2 classifications of liability;
-Current liability
-Non current liability

Let's start with current liability:>

#QUESTION
Do you have any idea on what is current liability?

Take note:
CURRENT LIABILITY- are liabilities that fall due (paid, recognized as revenue) within one year after year-end date

Mga utang sa loob ng isang taon o maikling panahon

Current Liabilities
babayaran within 1 year (1 year o less)

#EXAMPLE:
-Accounts payable
-Notes payable

ACCOUNTS PAYABLE
are amounts due or payable to suppliers for good purchase on accounts or for services received on account.

HALIMBAWA:
May gusto kang bilhin pero kulang ang pera mo. Nagpunta ka sa kaibigan mo. Nakipag usap ka, tapos nangutang ka.

Take note:
"Accounts Payable"
ACCOUNTS = Utang
PAYABLE = Babayaran pa (hindi pa bayad)

ACCOUNTS PAYABLE = "Utang" na "hindi pa bayad"

Gets po ba??

Next..
NOTES PAYABLE (1yr.)
are amounts due to third parties supported by promissory notes.

Dito naman "Nangutang ka pero this time nakasulat na at nangangako kang magbabayad"

Take note:
"Notes Payable (SHORT-term)"
NOTES = Utang "na may kasulatan"

Ang tawag sa kasulatan (Promissory Note)

PAYABLE = Babayaran pa (hindi pa bayad)

TANDAAN:
In paying NOTES PAYABLE, may "dagdag-bayad" na "INTEREST" (Interest Expense)

Na gets po ba??
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NON CURRENT LIABILITY
are liabilities that do not fall due (paid, recognized as revenue) within one year after year-end date

HALIMBAWA:
Since hindi medyo manipis muka mo, nangutang ka tapos lagpas 1 taon mo bago bayaran

Minsan naman manipis muka mo, tapos butas ang bulsa mo. Eh malaking halaga ang inutang mo edi lagpas isang taon bago ka magbayad

Noncurrent Liabilities
babayaran beyond 1 year (more than 1 year)

Other EXAMPLES:
-Loans payable
-Mortgage payable

LOANS PAYABLE
Loan payable. ... If any portion of the loan is still payable as of the date of a company's balance sheet, the remaining balance on the loan is called a loan payable.

MORTGAGE PAYABLE
is the liability of a property owner to pay a loan that is secured by property

From the perspective of the borrower, the mortgage is considered as a long term liability

MORTGAGE: Utang na may SANLA

PAYABLE: Babayaran pa (hindi pa bayad)

Let me give you an analysis:

Bumili ka ng LAND pero di pa bayad (Utang-Mortgage Payable)
*pero yung Land ay nakaSANLA (Collateral)

Tanong:
Anong meaning ng nakaSANLA(Collateral)?

Pag hindi nakabayad sa utang na Mortgage Payable, yung LAND(Collateral) ay ibebenta. Yung pera galing sa benta ay gagamitin para mabayaran na yung Utang na Mortgage Payable.

*Kung halimbawang nag-LOAN naman sa bangko, pwede ring gawing Collateral ang other real properties ng business

ANOTHER EXAMPLE:
Nangutang ka ng 1M sa bangko tapos wala kang maipang bayad dun, kukuha ang bangko ng ari-arian mo na worth 1M din