Series 66: 1.1.2.2 Liabilities

1.1.2.2  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 no