What are liability accounts in accounting, and what types are there?

[amara]

I’m learning about different types of accounts in accounting and came across liability accounts. I understand they represent what a business owes to others, but I’d like to get a clearer picture of how they work in real-world bookkeeping.

 

[riya]

Liability accounts represent what a business owes to others. They show obligations payable in the future. Common types include current liabilities like accounts payable, accrued expenses, and short-term loans; and long-term liabilities like bonds payable, mortgages, and lease obligations. These accounts reflect a company’s financial responsibilities and debt structure.

 

[charlie]

Liability accounts show what a business owes to others. They display future-payable obligations. Current liabilities include accounts payable, accrued expenses, and short-term loans, whereas long-term liabilities include bonds payable, mortgages, and lease commitments. These accounts show a company's financial responsibility and debt structure.