Question

list and describe the elements of the credit component in the balance sheet.

Answer 1

Balance sheet for the financial statement it is a financial report of an organisation that represents the value of an organisation in terms of shareholders fund liabilities and Assets on a specific date
Credit components of balance sheet refers to the liabilities incured by the organisation either for expansion of business or for availability of cash as working capital for the smooth functioning of organisation.
Elements of credit components are:

1. long term borrowing : the loans taken form a bank or other financial institution for more than one year for expansion of the business or other purposes of business.
2. short term borrowing: the amount taken as a loan from for a period of less than one year is short term borrowing
3. statutory dues: the amount to be payable as Taxes,duties etc. to government which are you are also a part of credit components
4. Trade payables: the credit purchase of material from suppliers for a certain period of time is also a part of credit component
5. salary or wages payable : The salary wages are due for some period few times where the organisation fails to pay make payments for the work done by employees or labour