Bookkeeping & Write-up

Generally, liabilities are everything a business owes to creditors. Liabilities that will be due within one year and paid out of current assets are termed current liabilities. Liabilities that are not due for more than one year are termed long-term liabilities. Examples of current liabilities include accounts payable, notes payable, salaries, interest and taxes payable. Examples of long-term liabilities include the portion of the mortgage or loans or notes payables not payable within one year.