Liabilities are one of the five financial staement elements.
Working capital is a widely used but often misunderstood term. To teach it well, the term needs careful scrutiny. The problem starts, as it usually does, with language. ‘Working’ isn’t a helpful term. Working capital suggests that this capital works, and the rest of it doesn’t. ‘Capital’ is ambiguous and…Read more
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Paul Jennings gives some useful tips and sequences for teaching liabilities. The elements of financial statements are the building blocks of financial statements. If your students understand what the elements are then they will understand the basis for reporting events in financial statements. Those elements – assets, liabilities, equity, income…Read more
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