Liabilities

Liabilities are all of a company's potential debts to others. Companies typically categorize liabilities as short- or long-term.

Short-term < One Operating Period
Long-term > One Operating Period

Companies have less than one period of operation to repay short-term liabilities.

Companies have longer than one period of operation to repay long-term liabilities.

Examples of liabilities include operations loans due for funding and balances due to customers for services rendered during the period.