Question
Describe the types of Liabilities.

Answer

On the basis of relation, two types of liabilities are there :
$(1)$ Internal Liability,
$(2)$ External Liability On the basis of time, two types of liabilities are there :
$(i)$ Current / Short term liability, which is to be paid within one year.
$(ii)$ Non current / long term liability, which is to be paid by business over more than one year period. Amount payable by the business for credit purchases of goods / asset or amountpayable for borrowed money is known as liability

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