Fixed liabilities – Meaning

Fixed liabilities are those long term liabilities which a company has to pay after more than one year. It simply means that these liabilities become due for a business enterprise after one year.Fixed Liabilities

The total figure of these liabilities is used to check the dependency of a firm over its long terms debt instruments. For this purpose, it is used in ‘Debt to equity ratio’, which indicates balance between equity and debt used by a firm to raise funds.

These liabilities are shown on the liability side on a balance sheet.

List of fixed liabilities:

  • Debenture
  • Bonds
  • Mortgages
  • Pension obligations
  • Lease obligations
  • Loans and advances from subsidiaries
  • Loans and advances from banks
  • Other long term loans and advances.

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