short term of Liabilities Long term liabilities and Current liabilities
Liabilities refer to the financial obligation of anenterprise other than owner’s investment.
It may be current liability or longterm liability.
Current liabilities refer to the liabilities which fall due ina short period i.e. payable during the accounting year. Example, Tradecreditors, bills payable, outstanding expenses etc,
Long term liabilitiesrefers to those liabilities which do not fall due for payment in a relativelyshort period. Normally payable beyond one year. Example: Debentures, Long termloans usually on interest basis.