Where will 'Loan on Mortgage' be shown? |
Current liabilities Current Asset Non-current asset Non-current liabilities |
Non-current liabilities |
A "Loan on Mortgage" typically falls under the category of Non-current liabilities on a company's balance sheet. Non-current liabilities are obligations or debts that are not expected to be settled within the next 12 months. Instead, they are expected to be paid off over a longer period, usually beyond one year. Examples of non-current liabilities include long-term loans, bonds payable, deferred tax liabilities, and other long-term obligations. A "Loan on Mortgage" is a type of long-term loan where the borrower secures the loan with a property (usually real estate) as collateral. |