A liability is something you "owe" another person or company. A credit liability "usually" refers to a credit you owe, for example, an account payable may be classified as a "credit liability". Let's say your company purchased a computer system on credit, the balance you owe for the purchase is your "credit liability."
This is a distinction between other liabilities the company owes, such as Salaries Payable, Income Taxes Payable, etc, as these "payable accounts" are generally not of the "credit line", just a debt owed. Credit Liability is generally something the company owes by way of "credit", this does not include other operating expenses.
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
Yes. Liabilities have credit balances, so a debit will reduce a credit balance.
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
Yes.Most purchases are on credit and are therefore current liabilities
Increase liabilities = credit Decrease labilities = debit
Remember the basic accounting equations Assets = Liabilities + Owners Equity (Stockholders Equity) Assets increase with a debit Liabilities as well as Equity increase with a credit Liabilities have a credit balance (meaning you must credit the account to "increase" it and debit the account to "decrease" it) this makes liabilities a credit.
Yes. Liabilities have credit balances, so a debit will reduce a credit balance.
No, liabilities have a normal credit balance, that means that increases are also credit, and that decreases are debit. Please refer to the link provided for debit and credit rules.
what do you mean by liabilities
Yes.Most purchases are on credit and are therefore current liabilities
Increase liabilities = credit Decrease labilities = debit
liabilities will increase
Outstanding liabilities has credit balance as normal balance but it can also be debit balance in case outstanding liabilities has paid more than actual amount of liabilities.
Debits. Liabilities have credit balances so a debit will reduce such a balance.
Credit. As both current and non current liabilities are Credit accounts
assets and liabilities increase
Increase in Assets & increase in Liabilities