What is a liability? What is the difference between a current liability and a long-term liability?

Answer 1

A liability is a debt, or something owed. Current liability is due within less than a year, whereas a long term liability isn't due for more than a year.

Answer 2

A liability is a debt. It is something that is owed. The most common liability is the accounts payable liability for a business which is purchases on credit (similar to a credit card payment. The difference between a short term liability and a long term liability is when the debt is expected to be paid. It the debt is to be paid within a year it is considered short term. If a debt is to be paid sometime in the future or if it will take multiple years to pay the debt it is considered long term. A common example of a long-term debt is a loan for some type of property.

Answer 3

A current liability is something you owe now, such as a bill from a vendor, and a long term liability is something you do not have to pay right away, such as a note or mortgage.