This comprises the following amounts owed by the business to outside parties:
(a) Current liabilities—these include all liabilities which are due and payable within 12 months. Examples include creditors, bank overdrafts and sales tax payable.
This is comprised of all short-term obligations owed by your business to creditors, suppliers, and other vendors. Accounts payable can include supplies and materials acquired on credit.
This represents money owed on a short-term collection cycle of one year or less. It may include bank notes, mortgage obligations, or vehicle payments.
Accrued payroll and withholding
This includes any earned wages or withholdings that are owed to or for employees but have not yet been paid.
Total current liabilities
This is the sum total of all current liabilities owed to creditors that must be paid within a one-year time frame.
(b) Deferred liabilities—these are liabilities which are not due and payable within a 12-month period. Examples include mortgages and long-term loans.
These are any debts or obligations owed by the business that are due more than one year out from the current date.
Mortgage note payable
This is the balance of a mortgage that extends out beyond the current year. For example, you may have paid off three years of a fifteen-year mortgage note, of which the remaining eleven years, not counting the current year, are considered long-term.