Quick Answer: What Are The Two Components Of Liabilities?

Current liabilities are used as a key component in several short-term liquidity measures.

Types of Liabilities: Current Liabilities

  • Accounts payable.
  • Interest payable.
  • Income taxes payable.
  • Bills payable.
  • Bank account overdrafts.
  • Accrued expenses.
  • Short-term loans.

What are the components of liabilities?

Current liabilities are what a company currently owes to its suppliers and creditors. These are short-term debts, all due in less than a year.

There are five main categories of current liabilities:

  1. Accounts payable.
  2. Accrued expenses.
  3. Income tax payable.
  4. Short-term notes payable.
  5. Portion of long-term debt payable.

What are the main components of a balance sheet?

A standard company balance sheet has three parts: assets, liabilities and ownership equity. The main categories of assets are usually listed first, and typically in order of liquidity.

What are examples of liabilities?

Examples of liability accounts reported on a company’s balance sheet include:

  • Notes Payable.
  • Accounts Payable.
  • Salaries Payable.
  • Wages Payable.
  • Interest Payable.
  • Other Accrued Expenses Payable.
  • Income Taxes Payable.
  • Customer Deposits.

What are the 3 main characteristics of liabilities?

What are the three main characteristics of liabilities?

  1. due to past event or transaction the liability appears.
  2. Liability is the current obligation for the payment of cash or providing services in future.
  3. the obligation which cannot be escaped from payment or settlement is a liability.