Insurance Journal  2 hrs ago  Comment 
A novel approach to make public schools liable for campus violence under a measure is advancing in Colorado, even as lawmakers from both parties wonder whether liability will prevent the next mass shooting. The bill that won bipartisan approval...
The Economic Times  11 hrs ago  Comment 
Mohit Khattar, MD, Godrej Nature's Basket talks to ETRetail about its new investments and plans for gourmet online business.
Insurance Journal  Apr 14  Comment 
Victor O. Schinnerer & Company, an underwriting manager, has launched a new professional liability policy form for design professionals. The new form includes a variety of policy enhancements for large, mid-size, and small architecture,...
Insurance Journal  Apr 14  Comment 
A bill to make Colorado schools liable for shootings faces this week in the state Legislature. A Senate committee starts work on the measure inspired by the 2013 shooting death of Claire Davis at Arapahoe High School in Littleton. The bill...
Insurance Journal  Apr 13  Comment 
A U.S. judge on Wednesday rejected Arab Bank Plc’s bid to overturn a jury verdict finding it liable for knowingly supporting terrorism efforts related to a series of attacks in the Middle East. The Jordan-based bank had been accused by … The...
Forbes  Apr 13  Comment 
There are many situations in which one company might end up directing or supervising what could at first blush appear to be another company’s employees.  A delivery company might use a temporary staffing agency to provide it with drivers.  A...
Insurance Journal  Apr 9  Comment 
The Minnesota Supreme Court has ruled that an insurer created by the Legislature does not have to make its records public. The decision ends a two-year legal battle between the Star Tribune and the Minnesota Joint Underwriting Association. The...
The Economic Times  Apr 6  Comment 
"The overall fiscal liabilities of J&K state have increased from Rs 40,265 crore in 2012-13 to Rs 44,673 crore by the end of March 31, 2014," the report said.
Insurance Journal  Apr 1  Comment 
Ski areas are asking the Oregon Legislature for enhanced protection from lawsuits after the state Supreme Court invalidated the broad liability waivers often printed on the back of lift tickets. Ski facility executives told the Senate Judiciary...
Insurance Journal  Mar 30  Comment 
Nothing is more exciting than reading the latest updates on insurance law, unless, of course, you can get updates on corporate law at the same time. Fortunately, there are two recent Louisiana cases where the outcome of insurance law issues...


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.


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