Types of Liabilities

[Suba]

Liabilities are obligations whether they come from internal companies or external parties that must be paid by the company before they fall due.
To make it easier to record liabilities, they are divided into two types as follows:

Short-term liabilities
Short-term liabilities are also known as current liabilities, which are company obligations (debts) for less than one year or only one accounting cycle. Some examples of current liabilities are accounts payable, notes payable, salary debts (which have not been paid), electricity and water bills, tax debts, etc.

Long Term Liabilities
Long-term liabilities are obligations (debts) that must be paid by the company with a maturity of more than a year. Examples of long-term liabilities include: bank debt, mortgage debt, bonds payable, lease debt, etc.

 

[kerryjoy]

Liabilities encompass obligations, whether from internal operations or external parties, that a company must settle before their due date.

 

[Augusta]

Yes, almost all kinds of businesses would have the long term and short term liabilities. it's comes with the running of the business that needs to be cater for

 

[Fidelia]

The thing is that every business must endeavour to clear it's liabilities especially salary debts before it becomes a crisis situation.

 

[Starmix]

It's unavoidable especially to big companies specifically the bills and other loans for business extension or innovation. Small businesses may also have a short or long term liabilities.

 

[Augusta]

Companies need to always look for good ways to reduce business liabilities. This will help them.to have more profit.

 

[King Belieal]

A business must try it's possible best to operate with less liabilities because they seem to be a strain on the financial health and overall progress of the company.