Why Form 5495 Liabilities 2017-2023

In this video, you'll find out what liabilities mean in accounting. - I'm going to explain the definition and take you through the common types of liability that are worth knowing about, with examples to make things clearer. - (Upbeat) Hey viewers, I'm James, and welcome to Accounting Stuff, the channel that teaches you everything you need to know about accounting and bookkeeping. - If you'd like to learn more about these topics then check out my Accounting Basics playlist up here. - That will start you off with video number one. - I put out new content every week on this channel so hit the subscribe button and ring the bell to be notified when the next video is out. - Last week we discussed the meaning of assets in accounting. - Link up here if you missed it. - And in today's video we're going to talk about liabilities, the second pillar in the accounting equation. - Assets are equal to liabilities plus equity. - Liabilities can be broken down broadly into three categories: current liabilities, non-current liabilities, and contingent liabilities. - We'll explore the meaning of all of these terms in this video. - And, I don't know why, but the word liabilities always makes them seem like a bad thing. - Like, something we want to avoid. - But that is not the case. - Liabilities are just a normal part of business. - They aren't anything to be afraid of. - And I'm going to explain why right now. - Hold on tight because you're about to hear the full accounting definition of liabilities, and it ain't pretty. - Liabilities are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in...