Order for Listing Liabilities
It is logical for a company's liabilities to be organized in the chart of accounts in the same way as they are presented on the balance sheet:
- Current liabilities
- Noncurrent or long-term liabilities
Order for Listing Current Liabilities
Within the current liabilities classification, the order in which the current liability accounts are listed can vary. Here is a summary of how they might be organized:
- Short-term notes payable
- Current portions of long-term debt
- Accounts payable
- Payroll related liabilities
- Other accrued expenses
- Income taxes payable
Again, the order will vary. For example, some companies will list Accounts Payable as the first current liability account.
