Liability
Book a Trial Class
One-hour paid trial · Same-day reply · from RM50/hr
Classification of Accounts and the Accounting Equation
MS: Liabiliti · EN: Liability · ZH: 负债
Meaning
A liability is an obligation or debt owed by the business to outside parties that must be settled in the future. Liabilities are divided into non-current (long-term) and current (short-term) liabilities.
Example
For example, Anggerik Boutique borrows RM30,000 from the bank as a long-term loan (non-current liability) and owes RM4,000 to creditors (current liability).
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4