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Business Bookkeeping Service   Classification of Liabilities on
Balance Sheet  A liability is an obligation for a company or an
individual to settle a debt, avoiding which could lead to legal
action. There are two types of liabilities, Current and long
term liability that are organized in a balance sheet.  Liability
Classifications  Free Accounting Software Current Liabilities:
The liabilities that can be settled within a normal operation
cycle of a business are known as the current liabilities. Most
of the current liabilities should be settled within a year's
time using the current assets. Since all the current liabilities
will be because of the purchase of a product or service that is
recorded under accounts payable. The liabilities that are due to
acquiring machinery, property for the business operations are
also considered as current liabilities.  Even the income tax,
property taxes, salaries, telephone bills are also comes under
this categor