What are liabilities? Describe two different types of liabilities.

1.)the state of being responsible for something, especially by law.

"the partners accept unlimited liability for any risks they undertake"

2.) thing for which someone is responsible, especially a debt or financial obligation.

plural noun: liabilities

"valuing the company's liabilities and assets"

Explanation:

Brainliest!

Indebtedness

Explanation:

Liabilities can be defined as the present obligation of a firm or individual resulting from past event from which future economic benefit is expected to flow out of the firm or individual.

Liability is basically is divided into Non current liabilities and current liabilities.

Non current liabilities are present obligation of a firm or individual resulting from past events from which future economic benefit is expected to flow out of the firm or individual which is of a duration of more than one year. Examples include Debentures, long term loans, deferred tax, etc.

Current liabilities can be defined as the present obligation of a firm or individual resulting from past event from which future economic benefit is expected to flow out of the firm or individual which repayment spans within an accounting year. Examples include trade payable, short term loans, accruals, etc

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.