Liabilities in Accounting: Definition & Examples


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Which one of the following is the best explanation of liabilities?

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1. What's the difference between short-term and long-term liabilities?

2. On which financial statement are all liabilities reported?

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About This Quiz & Worksheet

This quiz and worksheet examine liabilities in accounting. You'll be expected to know examples of liabilities as well as the difference between short-term and long-term liabilities.

Quiz & Worksheet Goals

Use this quiz to review:

  • Definition of liabilities
  • Where liabilities are reported
  • Formula to determine liabilities
  • Types of liabilities

Skills Practiced

  • Information recall - remember the financial statement on which liabilities are reported
  • Knowledge application - use your knowledge to identify the correct formula to determine liabilities
  • Distinguishing Differences - compare and contrast topics from the lesson, such as short-term and long-term liabilities

Additional Learning

We have a corresponding lesson called Liabilities in Accounting: Definition & Examples that can answer any additional questions you may have. This lesson will help you:

  • Understand what liabilities are for a business
  • Identify the parties which can be owed liabilities
  • Describe what short-term liabilities involve
  • Appreciate how liabilities factor into the basic accounting equation