Liability is the monetary value of owed cash, product and services from other party on some condition. The company or individual who borrowed the amount is call borrower and the source provides the amount called lender.
Liabilities are divided into two types.
1- Current Liabilities
3-Non- Current Liabilities
Current liabilities are the debts, which are paid within a time period of year. E.g. Note payable, Account Payable.
Long term liabilities borrower has to pay this amount after one year, more risk is evolved in non-current liabilities as compared to current liabilities.