LIABILITIE

S
Aliability is a present
obligation of the enterprise
arising from past events, the
settlement of which is expected
to result in an outflow from the
enterprise of resources
embodying economic benefits
TYPES OF LIABILITIES
Current liabilities (short-term
liabilities)

Non-current liabilities (long-term

liabilities)

Contingent liabilities
CURRENT LIABILITIES
 Current liabilities (short-term
liabilities) are liabilities that are due and
payable within one year.
 Examples of current liabilities:
• Interest payable
• Income taxes payable
• Bills payable
• Bank account overdrafts
• Accrued expenses
• Short-term loans
NON-CURRENT LIABILITIES
 Non-current liabilities (long-term
liabilities) are liabilities that are due after a
year or more.
 List of non-current liabilities:
• Bonds payable
• Long-term notes payable
• Deferred tax liabilities
• Mortgage payable
• Capital leases
CONTINGENT LIABILITIES
 Contingent liabilities are liabilities
that may or may not arise, depending
on a certain event.
 Examples of contingent liabilities:
• Lawsuits
• Product warranties