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There are three types of liabilities.
1-Current or short term liabilities are due liabilities and payable within one year.
2-long term liabilities are non current liabilities.Its time is payable after 1one year.
3-Contigent liabilities are liabilities that may or may not arise ,depending on certain event.
There are three types of liabilities.
1. Current Liabilities – Obligations which are payable within 12 months or within the operating cycle of a business are known as current liabilities. They are short-term liabilities usually arisen out of business activities. Examples of current liabilities are trade creditors, bills payable, outstanding expenses, bank overdraft etc.
2. Non-current or Fixed Liabilities – Second among types of liabilities is non-current or fixed liabilities; they are long-term obligations of a business and are not payable within a year or an accounting period. They are generally used for the purchase of fixed assets. For example, long-term loans, bonds payable, debentures, etc.
3. Contingent liabilities – are those liabilities that may or may not be incurred by a business depending on the outcome of a future occurrence. In case the occurrence does not happen, an organization is not liable to pay anything. They are required to be disclosed as soon the amount can be estimated and are shown as a footnote to the balance sheet. Examples of contingent liabilities are;
4. Owner’s funds/Capital/Equity – Last among types of liabilities is the amount owed to proprietors as capital, it is also called as owner’s equity or equity. Capital, as depicted in the accounting equation, is calculated as Assets – Liabilities of a business. It is an internal liability of the business and includes reserves and profits.
Liabilities: credits, risk, loan, mortgage, rent, electricity bill, maintainance bills/charges, money lent, debts etc.
There are 3 types of liabilities as listed below:
1. Current Liabilities - usually referred to as short-term liabilities
2. Non-Current Liabilities - usually referred to as long-term liabilities
3. Contingent Liabilities - depending upon various events
Examples of liabilities are -
Bank debt.
Mortgage debt.
Money owed to suppliers (accounts payable)
Wages owed.
Taxes owed.
There are three typs of liabilities as follwoing :
1- Current Liabilities: These are liabilities that are expected to be paid off within a year, such as accounts payable, taxes payable, wages payable, and short-term loans.
2-Non-Current Liabilities: These are liabilities that are not expected to be paid off within a year, such as long-term loans, bonds payable, deferred tax liabilities, and pension obligations.
3-Contingent Liabilities: These are potential liabilities that may or may not arise depending on the outcome of a future event or condition. Examples include lawsuits, product warranties, and environmental clean-up costs.
Regards,
TYPES OF LIABILITIES: SHORT-TERM (CURRENT), LONG-TERM (NON-CURRENT), CONTINGENT LIABILITI, AND INTERNAL LIABILITY (CAPITAL)
Current, non current & Contingent
current liabilities,long-term liabilities and contigent liabilities
