Liabilities in accounting are the future payment of obligations and services that the company is expected to pay. There are two types of liabilities in accounting - current liabilities and long-term liabilities. Current liabilities are those set of liabilities that the company is expected to square off within the business year and it includes accounts payable, notes payable, current portion of long-term debt, current lease payment, accrued expenses, current tax payables etc. Long-Term Liabilities in accounting are those that are not expected to be paid within one year are long term in nature. Long-Term Liabilities primarily include long-term debt and other long-term lease obligations.
Top topics covered in this liabilities in accounting sections are as follows -
Types of Liabilities in Accounting
What is accounts payable and accounts payable outstanding?
What are accrued liabilities in Accounting?
What are notes payables and revolving credit facilities?
Bonds payable accounting
What is Unearned Revenue and Deferred Revenue?
What is the current portion of long-term debt?
What is Minority Interest?
Accounting for Convertibles and Derivatives
What is the difference between Financial Lease and Capital Lease?
Accounts Payable is the money that needs to be paid to the suppliers of raw materials, services to the company. It is also shown as a liability in the balance sheet as it is a liability for the business.
A financial Lease is a commercial contract in which lessor lets the lessee use an asset in lieu of periodical payments for the usually long period, whereas Operating Lease is a commercial contract where the lessor allows the lessee to use an asset in lieu of periodical payments for a small period of time.