Overview
Liabilities are amounts that the company owes to others.
- Current Liabilities
- liabilities that are due within the next year, or the end of the current
operating cycle
- Accounts Payable - amounts owed to other companies, typically for purchasing their services or products on credit.
- Accrued Liabilities - these are expenses that the company owes, but for which the company has not made a payment. The most common example is Salary Payable, that is, money that is owed to employees but which has not been paid yet.
- Notes Payable - money that is owed by the company taking a loan or issuing some sort of credit security.