Liabilities in Accounting

Liabilities Meaning

Liabilities in Accounting are the financial obligation of the company as a result of any past events which are legally binding on it to be payable to the other entity, settling of which requires an outflow of the different valuable resources of the company and these are shown in the balance of the company.

Liabilities is an account in which the company maintains all its records like such as debts, obligations, payable income taxes, customer deposits, wages payable, expenses occurred. Liability accounts will normally have a credit balanceA Credit BalanceCredit Balance is the capital amount that a company owes to its customers & it is reflected on the right side of the General Ledger Account. Usually, Liability accounts, Revenue accounts, Equity Accounts, Contra-Expense & Contra-Asset accounts tend to have the credit balance. read more.

Liabilities Accounting
  • Liability is an obligation, that is legal to pay like debt or the money to pay for the services or the goods utilized. They are settled over a particular period.
  • Some of the examples of Liabilities are Accounts payable, Expenses payable, Salaries Payable, Interest payable. The opposite word of the liability is an Asset.
  • For a bank, accounting liabilities include Savings account, current account, fixed deposit, recurring deposit, and any other kinds of deposit made by the customer. These accounts are like the money to be paid to the customer on the demand of the customer instantly or over a particular period of time. These accounts for an individual are referred to as the Assets.

List of Of Liabilities in Accounting

The following are a list of liabilities in accounting.

Liabilities in-Accounting

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#1 – Current Liabilities

Current Liabilities

Current liabilitiesCurrent LiabilitiesCurrent Liabilities are the payables which are likely to settled within twelve months of reporting. They're usually salaries payable, expense payable, short term loans etc.read more are the obligations of a company that are supposed to be paid within twelve months or a year. These are generally called as Short term Liabilities

List of Current Liabilities

Here is the list of Current Liabilities Accounting are:

#2 – Non-Current Liabilities

Long Term Liabilities

Non-Current liabilities are the obligations of a company that are supposed to be paid or settled on a long term basis generally more than a year. These are generally called as Short term Liabilities.

List  of Non-Current Liabilities in Accounting

Here is the list of Non-Current Liabilities AccountingNon-Current Liabilities AccountingThe most common examples of Non-Current Liabilities are debentures, bond payables, deferred tax liabilities etc. Non-Current Liabilities are the payables or obligations of an entity which might not be settled within twelve months of accounting such transactions. read more

#3 – Contingent Liabilities

Facebook Contingencies Oculus

Source: Facebook SEC Filings

Contingent LiabilitiesContingent LiabilitiesContingent Liabilities are the potential liabilities of the company that may arise at some future date as a result of a contingent event that is beyond the company's control. read more are obligations that may or may not occur. These obligations may arise due to specific situations and conditions.

List of Contingent Liabilities

This article has been a guide to what is Liabilities and its meaning. Here we discuss the list of Accounting Liabilities along with its types (Current, non-current, and contingent) and examples. You can learn more about from the Accounting following articles –

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  2. Benson macheso says

    This was helpful. I enjoyed it

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