UrbanPro
true

Take BCom Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

What is liabiliy?

Dev Group
14/04/2017 0 0

A liability is an obligation and it is reported on a company's balance sheet. A common example of a liability is accounts payable. Accounts payable arise when a company purchases goods or services on credit from a supplier. When the company pays the supplier, the company's accounts payable is reduced.

Other common examples of liabilities include loans payable, bonds payable, interest payable, wages payable, and income taxes payable. Less common liabilities are customer deposits and deferred revenues. Deferred revenues come about when customers prepay a company for work to be done in a future accounting period. When the company performs the work, the liability will be reduced and the company will report the amount it earned as revenues on its income statement.

Liabilities are also part of the accounting equation: Assets = Liabilities + Stockholders' Equity. Liabilities are often viewed as claims on a company's assets. However, liabilities can also be thought of as a source of a company's assets.

0 Dislike
Follow 0

Please Enter a comment

Submit

Other Lessons for You

CORRECT TECHNIQUE = 1ST STEP TOWARDS SUCCESS
CHEMISTRY The main problem among students is fear, when they start studying chemistry from class IX actually. Unfortunately the curriculum in all boards is designed in such a way, that the basic concepts...

Accounting For Partnership Firms : What And Why.
"Partnership is the relation between persons who agreed to share the profits af a business carried on by all or any of them acting for all" -(sec 4, Indian Partnership Act, 1932) The individual who...

Various Methods of Depreciation
Dear students,Depreciation refers to a phenomenon where the value of a fixed asset falls year on year. This change is due to obsolescence in technology, efflux of time and wear and tear of the fixed asset...

SMART WORK LEADS TO SUCCESS
To solve any mathematical problem follow the steps as stated below. Read the problem clearly to identify the information provided and the part to be solved. Represent the data or information you read...

Objectives of financial accounting
1. Maintenance of records of business 2. Ascertain the results of business 3. Construct the financial position of business 4. Providing accounting information to its users.
X

Looking for BCom Tuition Classes?

The best tutors for BCom Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take BCom Tuition with the Best Tutors

The best Tutors for BCom Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more