Finance Formulas / July 18, 2018 / Cecelia Weiss
Liabilities include all of the money a company owes. Similarly to assets, liabilities are divided into current liabilities, which include things like rent, tax, utilities, debts that are payable within a year, and dividends payable. "Long-term liabilities" generally refers to long-term debt the company has issued (bonds), but can include other non-immediate expenses such as pension obligations.
Assets include anything a company owns that has monetary value, even if it can't be readily sold. They are split into two classes current assets, which refers to assets that a company can (or will) sell within one year, and long-term assets, which are the assets a company cannot (or doesn't plan to) sell within a year.
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