What are liability accounts?

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Withers 0 Comments

Do you know what kind of accounts are considered as liability accounts? Do you know where I can find a list of the most common liability accounts that are both current and non current?

1 Answer

score 0 · Answer 1 · 2012-12-02T22:01:26+00:00

Liability accounts are divided into current and non current. Current liability accounts record the transactions that when settled (which will be in less than 12 months), economic value will flow from the business. A non current liability records transactions/liabilities that are expected to be settled (paid) in more than 12 months from the reporting date.