Types of liabilities/ list of liabilities

Types of liabilities/ list of liabilities

Types of liabilities/ list of liabilities

Liabilities

Liabilities are obligations or debts that an enterprise has to pay after some time in the future.
Or

Liabilities mean the amount owed by the Business.
Liability towards the owners of the business is termed as internal liability. on the other hand, Liability towards the outsiders,i.e, other than the owners of the business is termed as external liability.

Types of liabilities/ list of liabilities:

1. Current Liabilities Or Short term Liabilities:

Current Liabilities Or Short term Liabilities
Current Liabilities Or Short term Liabilities

Current Liabilities are obligations or debts that are payable within a period of one year.
Or
These are those Liabilities that are payable within a period of one year.
For Examples:
1. Account Payable (Trade Creditors & Bills Payable),
2. Bank overdraft,
3. Cash credit,
4. Outstanding Expenses,
5. Income received in advance,
6. Interest payable.
7. Income taxes payable etc.

2. Non-Current Liabilities Or Fixed Liabilities Or Long Term Liabilities:

Non-Current Liabilities Or Fixed Liabilities Or Long Term Liabilities:
Non-Current Liabilities Or Fixed Liabilities Or Long Term Liabilities:

Non-Current Liabilities are those obligations or debts that are payable after a period of one year.  Or These are those Liabilities that are not payable within a period of one year. 
For Examples:
1. Long-term Bank Loan,
2. Debentures,
3. Long-term Loan,
4. Borrowings,
5. Bonds etc.

3. Contingent Liabilities:

Contingent Liabilities
Contingent Liabilities

These are those Liabilities that will become payable of an uncertain future event, otherwise not.  Or Contingent Liabilities are those Liabilities that are not certain at the time of preparing the balance sheet. Contingent Liabilities are not shown in the balance sheet. However, they are disclosed by way of a footnote just below the balance sheet.
For Examples:
1. Bills of exchange discounted but not yet matured,
2. Guarantees were given by the firm,
3. Claim against the company not acknowledged as debt.

 Also Read: List of current assets and current liabilities

Also Read: Tangible vs Intangible Assets

Also Read: Liquid Ratio Or Quick Ratio Or Acid Test Ratio

 

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