Liabilities
Bookkeeping Ingredients > Chart Accounts-Accounts
Definition: Obligations of the business to transfer assets or provide services to other entities in the future.
Financial Statement: Balance Sheet
Examples: Accounts Payable, Notes Payable, Salaries Payable, Unearned Revenue, Bonds Payable
Categories:
Current Liabilities
Obligations that are expected to be settled within one year or the operating cycle, whichever is longer.
Examples: Accounts Payable, Salaries Payable, Unearned Revenue, Short-term Notes Payable
Non-Current Liabilities (Long-term Liabilities)
Obligations that are not expected to be settled within one year or the operating cycle.
Examples: Bonds Payable, Long-term Notes Payable, Mortgage Payable
Debit: Decreases Balance
Credit: Increases Balance
Normal Balance: Credit
What Your Business Owes
Dave Explains Business Liabilities