10 Examples of Liabilities
Liabilities are a crucial part of any business’s financials. They are the obligations of a company that are due to another party. Liabilities can be both short-term and long-term. It is important to understand the different types of liabilities and how they affect a company’s financial health.
Here are 10 examples of liabilities that can appear on a company’s balance sheet:
1. Accounts Payable: Accounts payable are short-term liabilities that are due to vendors and suppliers for goods and services that have been purchased on credit.
2. Payroll Due: Payroll due is the amount of money owed to employees for their wages and salaries.
3. Payroll Taxes: Payroll taxes are taxes that are withheld from employee wages and salaries and are due to the government.
4. Accrued Expenses: Accrued expenses are expenses that have been incurred but not yet paid.
5. Short-Term Notes Payable: Short-term notes payable are short-term loans that are due to lenders.
6. Income Taxes: Income taxes are taxes that are due to the government based on a company’s income.
7. Interest Payable: Interest payable is the amount of interest that is due to lenders on outstanding loans.
8. Accrued Interest: Accrued interest is the amount of interest that has been earned but not yet paid.
9. Utilities: Utilities are the costs of electricity, water, and other services that are due to utility companies.
10. Rental Fees: Rental fees are the costs of renting property and are due to the landlord.
It is important to understand the different types of liabilities and how they affect a company’s financial health. By tracking and managing liabilities, businesses can ensure that they remain financially sound and are able to meet their obligations.