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Here we will study about What are Liabilities or Liabilities Definition In Accounting. Liabilities Definition Liabilities are the debts due payable by the business to outsiders of the business. Examples are Accounts Payable , Accrued Expenses , Notes Payable, Unearned Commission, Banks Loans, etc. Liabilities include Current Liabilities And Lon-Term Liabilities or Non Current Liabilities . Liabilities in Accounting plays an important role as it provides Sources of Finance to the business in order to operate the business effectively. Business needs Credit from time to time to operate the business and also for launching many successful projects, the credit is needed to avoid time loss and repay the loan when the company generate revenues from that project within the specified time period set in the agreement between Company and Creditors or Banks or other Financial Institutions. The Favourable Balance or Normal Balance f...

Here we discuss about Long-Ter m Liabilities Definition And Their Examples. Previously we discussed about   Current Liabilities And Their Examples . Long-Term Liabilities Long-Term Liabilities are those Liabilities that having life more than one year or that mature more than one year. Long-Term Liabilities arise from the acquisition of Major Expenditures. For Example, Purchase of Land From Loan, Purchase of Buildings From Bank Loan, Purchase of Another Company, etc. Business Transactions related to Long-Term Liabilities are occurred very few in number in the life of company businesses. Examples of Long-Term Liabilities 1. Bank Loans Entrepreneurs get personal loans from banks for starting small businesses and theses loans mature more than one year or expires after the accounting cycle of the business. There are many examples of getting personal loans from banks by small business owners to start their business. 2. Long Term Debts All th...