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In accounting terms, liability describes an obligation. It refers to money owed to complete a transaction, debt that has yet to be paid, or products or services that have been paid for but have not yet been rendered. There are two general classifications to sum up these types of liability: long term and short term/current liability. Long-term describes debt paid out over more than one year, while short-term liability refers to debt paid within a year or less. the two types of liability(in Business matter) are: 1.current liability 2.long-term liability

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Tom Schmidt

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What are the different types of Contingent Liabilities?

Common types of contingent liabilities include guarantees and the results of legal disputes. Guarantees may be given on behalf of an associate company, or as part of a larger deal (banks frequently give guarantees of various sorts as part of their business).


How can one determine the total liabilities and equity of a company?

To determine the total liabilities and equity of a company, you can look at its balance sheet. The balance sheet shows the company's assets, liabilities, and equity. Liabilities represent what the company owes, while equity represents the ownership interest in the company. By adding up the total liabilities and equity listed on the balance sheet, you can find the company's total liabilities and equity.


How can one determine liabilities by comparing assets and net worth?

Liabilities can be determined by subtracting assets from net worth. If the result is a negative number, it indicates the amount of liabilities.


What are the different types of accounts in accounting and how do they differ from each other?

In accounting, there are three main types of accounts: assets, liabilities, and equity. Assets are resources owned by a company, such as cash, inventory, and equipment. Liabilities are debts or obligations owed by a company, like loans or accounts payable. Equity represents the company's ownership interest, including investments by owners and retained earnings. These accounts differ in terms of what they represent on a company's financial statements. Assets show what a company owns, liabilities show what it owes, and equity shows the net worth of the company.


What is an asessment of personal assets and liabilities?

An assessment of personal assets and liabilities lists all your assets (like your home, car, money in the bank, etc.) and your liabilities (debt in the form of loans, house mortgage, etc.). The asset's values are totalled and the liabilities are totalled. Comparing you total assets and total liabilities will show your financial situation.

Related Questions

Type of liabilities?

There are several different types of liabilities. The two main types are current and long term. Then there are contingent liabilities which can be classified as either current or long time.


What do current liabilities mean in accounting?

Current Liabilities in accounting are amounts that are owed by a business. The two types of current liabilities are short-term and long-term liabilities.


Define contingent liabilities?

types of liabilities also used in accounting matter in business level accounting. when use this liabilities at money goes outside also get some types of loss but not actual loss of the company's accounting departmental also.


What are different kinds of liability?

There are several types of liabilities but for financial accounting liabilities are generally split into current and long term liabilities. Current liabilities are accounts payable and loans that payment is made on demand. Long term liabilities are debts that payable more than a year out.


Which of the following types of accounts are decreases recorded by credits?

revenues, liabilities


In which types of accounts are increases recorded by credits?

Liabilities, Sales revenue, Capital.


What are the three types of payroll liabilities?

The three types of payroll liabilities include withholding liabilities, which consist of amounts deducted from employee wages for taxes and other contributions; employer payroll taxes, which are the employer's share of taxes such as Social Security and Medicare; and benefit liabilities, which involve obligations for employee benefits like health insurance and retirement contributions. These liabilities must be accurately calculated, reported, and paid to ensure compliance with tax regulations and employee agreements.


If current liabilities are 7714 and total liabilities are 18187 what is the ratio of current liabilities to total liabilities?

Current Liabilities to Total Liabilities Ratio = Current Liabilities / Total Liabilities Current Liabilities to Total Liabilities Ratio = 7714 / 18187 Current Liabilities to Total Liabilities Ratio = 0.42 or 42%


What are the different types of Contingent Liabilities?

Common types of contingent liabilities include guarantees and the results of legal disputes. Guarantees may be given on behalf of an associate company, or as part of a larger deal (banks frequently give guarantees of various sorts as part of their business).


What are the classification in the liabilities?

liabilities can be classified as short term liabilities and long term liabilities


Two common subgroups for liabilities on a classified balance sheet are?

current liabilities and long term liabilities


Do Debts owed by a business are referred to as?

Liabilities Liabilities