What are Liabilities ?

Author: Ruban
Sector: Education
Industry: Investment

It is the money that a company owes to outside parties, from bills it has to pay to suppliers to interest on bonds it has issued to creditors to rent, utilities and salaries. Moreover, there are two types of liabilities. Current liabilities and Long term liabilities.

Current liabilities:

Current liabilities are those that are due within one year and are listed in order of their due date. Current liabilities accounts might include:

Long-term liabilities:

Long-term liabilities are due at any point after one year.

Some liabilities are considered off the balance sheet, meaning that they will not appear on the balance sheet.


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