What Are Considered Liabilities

Only those are to be considered as Liabilities that are payable by the business to outsiders. Such as Accounts Payable, Accrued Expenses or Expenses Payable, Unearned Revenue, Utility Bills Payable etc. These are the rights of outsiders from whom the goods are purchased or services received on credit or on account. The business is liable to pay to the concerned parties in time or before due date.

Liabilities are recorded on Balance Sheet under Liabilities & Equity Section.