what are liabilities?

A liability can be defined as something which a person or a company owes (can be in the form of money or products) to someone. Liabilities are counted as the debts of the companies which are paid within the given course of time, these can be money, goods or services. Liabilities are of 2 types, current liabilities which are short term, these are payable within 12 months and another is non-current liabilities which are termed as long terms and are paid in or after 12 months.