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The role of a liability and what it means to the business as a whole is different for every business. What remains the same is the definition. A liability is a company’s legal debts or obligations that arise during the course of business operations and is recorded on the balance sheet. Liabilities can include many things to a business, such as, loans, accounts payable, mortgages, accrued expenses, etc. All the named liability accounts are just fancy for any money or service that is owed to another party. There are two types of liabilities, current liability and long term liability. Current liability is debt payable within one year and long-term liability is debt payable over more than a year. Current liability includes
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A line of credit is a credit source that is extended to a government, business, or individual by a bank or other financial institution. Examples of lines of credit are overdraft protection, term loan, discounting, purchase of commercial bills, etc. The long term liabilities decreased dramatically due to Bob Evans Farms eliminating and paying off its long-term debt. Another industry listed in the FASB Codification is the entertainment industry. The entertainment industry includes many different entities such as broadcasters, casinos, films, and music. The Cosmopolitan Casino of Las Vegas has just recently filed their annual report to the SEC. The Cosmopolitan located in the heart of Las Vegas is just like a regular casino and resort. It includes a hotel, casino, restaurant, entertainment such as concerts, clubs and ice rinks and of course, being in Vegas, a wedding chapel. You will see that liabilities for an entertainment industry are much higher than that of an agriculture industry. Liabilities | December 31, 2012 | December 31, 2011 | Current Liabilities | | | Accounts payable | $9,136 | $12,232 | Interest payable to affiliate | 10,867 | 11,122 | Accrued and other liabilities | 80,456 | 63,926 | Advance condominium deposits | 653 | 31,118 | Total Current Liabilities | 101,112 | 118,398 | Accounts payable-construction | 163 | 4,479 | Accounts payable- retention | 154 | 15,583 | Accrued and other
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