Insurance Journal  3 hrs ago  Comment 
Company directors and senior managers across the globe are increasingly likely to face costly regulatory investigations, criminal prosecutions or civil litigation, which not only put their company’s assets, and their own assets, at risk, but...
Financial Times  Dec 2  Comment 
One-time consensus-builder presided over a meltdown of France’s Socialists  Nov 30  Comment 
Chancellor tells Treasury select committee that costs arising from agreement will come within current spending limits A deal to keep Nissan making cars in the north-east will not add to the government’s liabilities, according to Philip Hammond,...
Insurance Journal  Nov 30  Comment 
DUAL Commercial, a subsidiary of the Hyperion Insurance Group Limited, has partnered with Aspen American Insurance Co., part of Aspen Insurance Holdings Limited, enabling DUAL to provide a broader management liability product offering for both...
Insurance Journal  Nov 28  Comment 
QBE North America has formed a program underwriting agreement with Stateside Underwriting Agency (SUA) to offer its clients who are title agents, abstractors and escrow agents professional liability insurance for primary and excess coverage....
Insurance Journal  Nov 23  Comment 
A pawn shop that sold a gun to a mentally ill Missouri woman who used it to fatally shoot her father will settle in a wrongful death case, according to the attorney for the woman’s mother. Washington, D.C.-based Brady Center …
Forbes  Nov 21  Comment 
An aircraft pilots association is asking the U.S. Supreme Court to reverse a decision from the U.S. Court of Appeals for the Third Circuit that allowed states to impose their own safety standards in place of federal law. An amicus brief from the...
The Hindu Business Line  Nov 21  Comment 
There's not a person who would not have been told that investing in real estate was the way to El Dorado during the past decade. Stock markets were choppy and so was gold. But real estate prices se...
The Economic Times  Nov 12  Comment 
The six-day conference was held at Greater Noida near here in which about 1,500 delegates along with other observers participated.


A liability is an accounting term for anything of value a company or an individual owes. Liabilities can include financial liabilities usually debt or fixed goods which have yet to be delivered. Publicly-traded companies are required to list a summary of their assets and liabilities every quarter on their balance sheet, where accounting rules determine how liabilities are categorized and valued. The opposite of a liability is an asset - something of positive value, or something the company owns.

Types of Liabilities

From an accounting perspective, liabilities are divided into two broad categories:

Current Liabilities

Current liabilities are debts or obligations which are due within a year. Current liabilities are reported on the company's balance sheet and include Short-Term Debt, accrued liabilities and Accounts payable.

  • Short-term bank loans: which are a form of short-term debt that the company takes out.
  • Accounts payable: which is money owed to a company, for a good or service. This includes unpaid bills.

By the principle of prudence, current liabilities are reported in the balance sheet at their least favorable valuation.

Long-Term Liabilities

Long-term liabilities are liabilities that will not be paid off or are not due within a year. Long-term liabilities are also reported on the company's balance sheet and include items such as long-term bank loans and bonds issued by the company. They are generally subject to interest payments. Examples include: company cars, computers and investment in another company.


Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki