Series 66: Liabilities

Liabilities

Liabilities are what a company owes to others. Like assets, liabilities can be divided into current liabilities and long-term liabilities. Current liabilities are debts that will be paid back within a year. Current liabilities include:

• • Accounts payable—Amount that is owed to suppliers
• • Accrued expenses—Wages, taxes and interest that have accrued, but have not yet been paid
• • Short-term