Liabilities

RECENT NEWS
Insurance Journal  Nov 25  Comment 
Cyber liability insurance isn’t just for large corporations anymore. Demand for cyber liability insurance is now coming from middle-sized and small businesses, according to an insurance CEO who believes the market potential is tremendous. “Now...
Insurance Journal  Nov 24  Comment 
Newly sworn-in trustees in Oakley, Mich., are reinstating the village’s police department after its shutdown in September. The Saginaw News reports the village council voted 3-2 to re-establish the police force. It also approved liability...
Insurance Journal  Nov 21  Comment 
The fast-growing online residential space sharing service Airbnb has added a $1 million liability insurance policy that protects those, including landlords and homeowners associations, facing lawsuits related to the renting of their properties...
Insurance Journal  Nov 21  Comment 
Nebraska’s insurance company is asking a judge to declare that it has no duty to pay any award made against the Nebraska State Colleges Board of Trustees in a lawsuit over the 2010 disappearance of a Peru State College student … The article...
TechCrunch  Nov 20  Comment 
 Airbnb today announced an additional liability insurance program that will provide U.S. hosts with up to $1 million worth of protection in the case a guest is accidentally injured anywhere in a host’s building or on their property during their...
Insurance Journal  Nov 18  Comment 
Confidential settlements over defective Takata Corp. air bags are sealing off relevant information that other victims could use to pursue injury claims. The accords make financial sense for the settling parties, but Takata and other defendants,...
The Hindu Business Line  Nov 7  Comment 
Industry says third-party motor insurance claims in excess of ₹12,000 cr
New York Times  Nov 7  Comment 
It is the latest loss for the company as it fights court decisions that could bring $18 billion in penalties.
Mondo Visione  Nov 5  Comment 
Please be advised that EDGA Exchange, Inc. (“EDGA”) and EDGX Exchange, Inc. (“EDGX”, and together with EDGA, the “Exchanges”) have amended the liability caps under EDGA Rule 11.121 and EDGX Rule 11.14 related to Limitation of...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

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.

References

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