TYPES OF LIABILITY

TYPES OF LIABILITY Two ways of categorization:-

1. As per time Period

2. as Per the party to whom our firm owes.

As per time Period:-It may be a) Current Liability or b) Non- Current Liability

Current Liability:-1. Expected to be paid within one year.

2. Examples Creditors, Bills Payable, Outstanding Expenses etc.

Non Current Liability also called fixed liability:- Those liability which are to be repaid after one year.

Examples are:- Public Deposits, Long term loans etc.

As per the party to whom our firm owes:-

a.) Internal Liabillity or b) External Liability

Internal Liability:-Means the liability of the business towards its owners also called capital.

External Liability:- Means what amount our firm owes to outsiders.Examples Creditors, Bank Loans, Outstanding Payment etc.

By the end of this lecture you will be able to understand the various types of liability mainly in the form of internal v/s external liability and current v/s non-current liability. Please take a moment to Like, Subscribe, and Comment on this video! View Our Channel To See More Helpful Videos - https://www.youtube.com/tarunanejaclasses