Series 7: 9.4.1.2.2. Liabilities

9.4.1.2.2. Liabilities

Liabilities are what a company owes to others. Like assets, liabilities can be divided into current liabilities and long-term liabilities. Current liabilities are debts that will be paid back within a year. Current liabilities include:

• Accounts payable—amount that is owed to suppliers

• Accrued expenses—wages, taxes, and interest that have accrued but have not yet been paid

• Short-term notes