What is liability?Mention its types and explain.

1.	What is liability?Mention its types and explain.
Answer» liability means benefits will be given in future types : current , non- current and contingent<br>Current: obligations which are payable witin 12 months or within the operating cycle of a business .Non-current: these are long term obligations of a business and are not payable within a year or an accounting period.Contingent: those liabilities that may or may not be incurred by a business depending on the outcome of a future occurance.<br>There are 3 primary types of liability: current, non-current and contingent liability<br>There are 3 primary types of liability: current , non-current and contingent liability<br>Liability is something a person or company owes, usually a sum of money.. recorded on the right side of balance sheet . It includes loans, accounts payable, earned premiums, accured expenses etc.

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