Liabilities

Current liabilities are short-term liabilities that are due within one year and include: 

• Accounts payable are a short-term debt owed to suppliers.
• Accrued expenses are expenses that have yet to be paid, but have a high probability of being paid.

Non-current liabilities are also listed on the balance sheet and are included in the calculation of a company’s total liabilities. Non-current liabilities are long-term debts or obligations and unlike current liabilities, a company does not expect to repay its non-current liabilities within a year. Some examples of non-current liabilities include:

• Long-term lease obligations
• Long-term debt like bonds payable

For example, a company’s long-term lease that lasts more than one fiscal year is listed on the balance sheet. The rental arrangement is listed as an asset on the balance sheet, and the lease obligation is listed as a liability. Since the lease lasts longer than one fiscal year, it is a non-current liability.

Liabilities for any firm are its debts or what it owes to others. For a bank, the
main liability is the deposits which people keep with it.
                                         Liabilities = Deposits

The accounting rule states that both sides of the account must balance.

Hence,if assets are greater than liabilities, they are recorded on the right hand side as Net Worth.
                                Net Worth = Assets – Liabilities