I am trying to determine whether "Loans from Shareholders" is considered a current or long-term liability. I received the ('loans from shareholder') number from a 1120S tax form, which does not specify current or long-term liability in the category. In determining the current ratio, should I include "loans from shareholders" in the current liabilities calculation even though it is not specified?

Thank you!

When does this loan have to be paid back by?

Within 1 year? Current
More than 1 year? Long Term

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Originally Posted by CaptainForest

When does this loan have to be paid back by?

Within 1 year? Current
More than 1 year? Long Term

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Thanks for the answer! :)
Unfortunately, there is no specification as to when the loan is to be paid back, hence the dilema of counting it as current or long term.

I'd just call the company and ask but I'm conducting a surprise audit and the need to not alert the company to any action on my organization's part is key.

What you can always do is put it aside and finish your audit.

Once you complete your audit, you can then ask them about this 1 loan and deal with it then.