A non-interest-bearing current liability (NIBCL) is a current liability that does not accrue interest. This type of liability is typically used to finance the operations of a business. The most common examples of NIBCLs are accounts payable and taxes payable.
NIBCLs are different from other types of current liabilities, such as loans and credit card balances, which do accrue interest. The interest on these debts must be paid by the business, in addition to the principal amount. This can make NIBCLs a more expensive form of financing for a business.
However, NIBCLs can be a useful tool for businesses that need to finance their operations without taking on additional debt. NIBCLs can also help businesses to improve their cash flow by freeing up cash that would otherwise be used to pay interest on loans. Is non interest bearing liabilities included in net debt? No, non interest bearing liabilities are not included in net debt. What is another term for non-current liabilities? The term "non-current liabilities" refers to all liabilities that are not expected to be paid within the next 12 months. This includes long-term debt, lease obligations, and deferred tax liabilities. What is the meaning of interest bearing in accounting? Interest bearing refers to an account or debt that accrues interest. In other words, interest bearing accounts or debts are those on which interest is charged. The opposite of an interest bearing account is a non-interest bearing account. What is a non interest bearing asset? A non-interest bearing asset is an asset that does not generate interest income. For example, cash and investments in short-term debt instruments are typically non-interest bearing assets.
What are 5 examples of liabilities?
1. Accounts payable: This is money that a company owes to suppliers or vendors for goods or services that have been received, but not yet paid for.
2. Short-term debt: This is money that a company owes to creditors, such as banks, that is due within one year.
3. Long-term debt: This is money that a company owes to creditors, such as banks, that is due after one year.
4. Deferred revenue: This is money that a company has received for goods or services that have not yet been delivered.
5. Shareholders' equity: This is the portion of a company's assets that is owned by the shareholders. It can include items such as common stock, preferred stock, and retained earnings.