Basic Accounting - Liabilities

Liabilities are one type of source of assets.

Liabilities: the obligation that require probable future sacrifice.

Liabilities are listed according to term length.

Payables: obligations to pay later.

There are different kinds of payables:

1.      Wages Payable: (goes hand in hand with wage expense) how much employees earned but were not paid.

2.      Taxes Payable: (goes hand in hand with tax expense) how much taxes are not yet paid.

Accrued expenses, or unpaid expenses are liabilities. These are short term because they have a due date less than a year usually.

Unpaid Revenue: (goes hand in hand with accounts receivable) Revenue not yet paid. Usually a subscription.

Long term notes are bonds. There are also contingent liabilities (liabilities that may occur due to a possible future outcome).

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