Leaning Online

Here we discuss about Long-Ter m Liabilities Definition And Their Examples. Previously we discussed about   Current Liabilities And Their Examples . Long-Term Liabilities Long-Term Liabilities are those Liabilities that having life more than one year or that mature more than one year. Long-Term Liabilities arise from the acquisition of Major Expenditures. For Example, Purchase of Land From Loan, Purchase of Buildings From Bank Loan, Purchase of Another Company, etc. Business Transactions related to Long-Term Liabilities are occurred very few in number in the life of company businesses. Examples of Long-Term Liabilities 1. Bank Loans Entrepreneurs get personal loans from banks for starting small businesses and theses loans mature more than one year or expires after the accounting cycle of the business. There are many examples of getting personal loans from banks by small business owners to start their business. 2. Long Term Debts All those

Firstly, we must know about the term Ratio, then we discuss about the types of Financial Ratios And Their Formulas. Ratio Ratio is a relationship of one variable to another. Ratios are important to make financial analysis because by comparing results, we can get accounting information of various financial statements throughout the Accounting Period. Such information is expressed in percentage or in other ways to analyze the performance of the Entrepreneur from past to present and from present to future prospective. For Example, we can compare the Current Assets with Current Liabilities to check the working capital of the business. If the current assets are more than current liabilities, then the Entrepreneur is in a position to meet its short-term obligations. On the other hand, the firm is not running well to meet its daily expenses and pay its debts in time. Now, let us know about Financial Ratios or Accounting Ratios Financial Ratios or Accounting Ratio

Entrepreneurs need Capital at startups or at its initial stage to operate and run the business successfully. If the Entrepreneurs have enough capital to operate the business, they do not need to worry about raising funds. But, if they have limited amount of capital, then they need to raise funds to operate the business successfully. An Entrepreneur needs capital to survive and its business for the long period of time. So, it is very essential for the survival and existence of the new venture / entrepreneur. There are three main reasons due to which most Entrepreneurs / Ventures need funds at startups of the business. 1. Cash Flow Challenges 2. Capital Investments 3. Long Product Development Cycles You may also be interested in Financial Management in An Entrepreneur 1. Cash Flow Challenges When business grows or expands, new Entrepreneurs require sufficient amount of Cash In Hand. During This Stage, expenses and incomes play a vital role in th