What is a Liability?

WHAT IS A LIABILITY?
A liability can be expressed as a resource, which is owed to another entity. As far as a business is concerned, it is considered to be a debt. Liabilities can be divided into two main types; they are, long term liabilities and current liabilities. Long term liabilities which can be also known as non-current liabilities are debts of a business that are due to be paid back in a time period longer than 12 months. Long term liabilities or non-current liabilities include, long term loans from the bank or other institutions, debentures and mortgages. Lets now have a look at the second main type of liabilities, the current liabilities. Current liabilities are liabilities that are debts of a business that are due to be paid back within 12 months or less. Current liabilities include, short term loans from the bank or other institutions, bank overdrafts, creditors or accounts payable which are the people the business owes money to and accruals which are bills and expenses that have not yet been paid.

This video will help you with questions such as what is a liability, what is a liability in accounting, what are examples of liabilities, what is the meaning of liabilities, what are liabilities in business, what is a liability in property, what is liabilities in accounting, what is liabilities in accounting examples, liabilities and assets, types of liabilities, long-term liabilities, examples of liabilities, examples of long-term liabilities, what is the difference between assets and liabilities called.

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DISCLAIMER
Our content is to be used as an EDUCATIONAL TOOL that aims to provide a foundation for individuals to learn financial accounting, management accounting and bookkeeping topics as practiced in the United Kingdom. As a result, not all complexities are shown or provided. Examples may include but are not limited to; differences between financial reporting, accounting standards or tax treatments. We are NOT ENGAGED in the providing of accounting, bookkeeping, financial, investment, tax, or other professional services. You should consult with a qualified or professional such as an accountant, business advisor, investment specialist, lawyer, solicitor, etc., with regards to specific facts and situations.

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[ZzAnimeWorldZz]

Nice video, but talking like a robot isn't really going to attract many viewers :) Be a little more fun, this would scare off anyone jajaja