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.