What is liability?

 What is the liability?  What is Liability?

  Liability!

    Friends, we often hear about liabilities as well as assets in business.  Let us know what is a liability after all?  And what are these types?

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 Liability or Liability or Liability :- Let us know what is a liability for a company or an individual.  Liability means that a company or person has taken a loan and every company or person is legally bound to repay the same in future, it is called liability.

    Friends, the liability of any company is mainly of two types.

    1. Short-term Liability or Current Liability
    2. Long term liability or non-current liability

    1. What is Short Term Liability or Current Liability:-

    Current Liability or Short Term Liability We have to pay all those liabilities i.e. all those liabilities within one year, which is called current liability.

    Example :-

    - Amount outstanding,
    - accounts payable, to be paid in this year 
    - Short-term loan for one year,
    - Provision for loans payable
    - Income tax
      e.t.c

    2. What is Long term liability or non-current liability? 

    Long-term liability is a liability or liability that the individual or company receives for more than one year after the payment of the outstanding amount, it is called a long-term liability.

    Example :-

  - long term loan
  - Bonds (money in the form of loans taken from the public, such as selling shares by selling IPOs) 
- Personal liability (eg - pension of retired employees)
    e.t.c

Note :- 
Before investing in any company, investors should assess the assets and liabilities of that company very well.

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    #assetguru.  Mr. Roy