Examples of Liability

Liability refers to that amount which the individual or a company owes to outsiders and it has to be repaid on time otherwise it may lead to bankruptcy of individual or company. Given below are the examples of liability –

  1. Equity Share capital
  2. Preference Share Capital
  3. Bank Loan
  4. Debentures
  5. Unsecured Loan
  6. Bills Payable
  7. Outstanding Expense
  8. Unearned Revenues
  9. Sundry Creditors
  10. Provision for Taxation
  11. Proposed Dividend
  12. Claims not acknowledged as debts
  13. Guarantee or warranty

Out of the above the top 5 are long term liabilities while 6 – 11 are current liabilities and bottom 2 are called contingent liabilities.

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