Define liabilities,classify and give example of each?

Liabilities are obligations or debts that a company or individual owes to others. They represent the claims that others have on the company's assets. Liabilities are classified into two main categories: current liabilities and long-term liabilities.

1. Current liabilities: These are obligations that are expected to be settled within one year or the operating cycle of a business, whichever is longer. Examples include:
a) Accounts payable: Money owed to suppliers or vendors for goods or services purchased on credit.
b) Short-term loans: Borrowed funds that need to be repaid within a year.
c) Accrued expenses: Expenses that have been incurred but not yet paid, such as salaries, utilities, or taxes.
d) Unearned revenue: Payments received in advance for goods or services that are yet to be delivered.
e) Current portion of long-term debt: The portion of long-term debt that is due within the next year.

2. Long-term liabilities: These are obligations that are not expected to be settled within one year. Examples include:
a) Long-term loans: Borrowed funds that have a repayment period longer than a year.
b) Bonds payable: Debt securities issued by a company to raise capital, with a maturity date typically exceeding one year.
c) Pension liabilities: Obligations to provide retirement benefits to employees.
d) Lease obligations: Long-term rental agreements for assets like property or equipment.
e) Deferred tax liabilities: Taxes that will be payable in future periods due to temporary differences in accounting treatment.

It is important to note that liabilities represent the company's debts and obligations, and they are recorded on the balance sheet as a source of funds.