Outstanding Liabilities

Expenses which are payable at the end of period are called outstanding liabilities. For example: Account payable, wages payable, 

The outstanding liabilities are that don't seem to be paid yet. These outstanding liabilities are due on company's balance sheet and we got to pay them.

Contingent Liabilities

Liabilities which come into existence upon happening or not happening of certain event are called contingent liabilities.

Contingent liabilities are liabilities that may be incurred by an entity depending on the outcome of a future event such as a court case. These liabilities are recorded in a company's accounts and shown within the record when both probable and reasonably estimable as 'contingency' or 'worst case' financial outcome. A footnote to the record might describe the nature and extent of the contingent liabilities. The likelihood of loss is delineate as probable, reasonably attainable, or remote. the power to estimate a loss is delineate as celebrated, fairly estimable, or not reasonably estimable.

External Liabilities

Debts which are payable to outsider of business are called external liabilities. For example: Account payable, wages payable, 

The portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international money institutions. These loans, together with interest, must usually be paid in the currency within which the loan was made. in order to earn the needed currency, the borrowing country might sell and export product to the lender's country.

Internal Liabilities

Debts which are payable to owners of business are called Internal liabilities. For example: Capital of business is called internal liabilities.

 The total amount of debts payable by a business to its owners are called internal liabilities e.g., capital.


Example-For a company Internal liability mean that company can pay salary, thus salary is internal liability, and the company can pay interest to bank it's external liability.

Liquid Liabilities

The debts or liabilities which are payable after short period of time normally within three month are called current liabilities. For example: Creditors, Account Payable, outstanding wages, and outstanding expense

Liquid liabilities are known as broad cash. they're the add of currency and deposits in the central bank, and transferable deposits and electronic currency , plus time and savings deposits, foreign currency transferable deposits, certificates of deposit, and securities repurchase agreements, plus travelers checks, foreign currency time deposits, commercial paper, and shares of mutual funds or market funds control by residents.

Long Term Liabilities

The debts or liabilities which are payable after a long period of time normally more than one year are called long term liabilities.

Long-term liabilities area unit liabilities with a future profit over one year, like notes owed that mature longer than one year.

In accounting, the long-term liabilities are shown on the proper wing of the balance-sheet representing the sources of funds, that area unit generally bounded in form of capital assets.

Current Liabilities

The debts or liabilities which are payable within one year are called current liabilities. For example: Creditors, Account Payable, outstanding wages, and outstanding expense

In accounting, current liabilities are typically understood as all liabilities of the business that square measure to be settled in cash inside the fiscal year or the operating cycle of a given firm, whichever period is longer. A a lot of complete definition is that current liabilities are obligations that may be settled by current assets or by the creation of latest current liabilities. Accounts payable square measure due inside thirty days, and square measure paid inside thirty days, but do typically run past 30 days or 60 days in some situations. The laws relating to late payment and claims for unpaid accounts payable is said to the issue of accounts payable. 

The types of current liabilities embody notes collectible, long debts collectible, increased expenses and accounts collectible. at intervals these classes square measure particular types of liabilities, like debts to staff and suppliers, bank loans, prepayments and taxes. a couple of examples might build current liabilities easier to know.