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Tushar Aher Patil

Stealth • 7d

Day 8 About Basic Finance and Accounting Concepts Here's Some New Concepts In finance, Liabilities represent obligations or debts that an individual or organization owes to others. They indicate an outflow of resources, either cash or services, that must be fulfilled over time. Liabilities are essential for understanding a company’s financial health, as they influence cash flow and future obligations. Liabilities are divided into two primary types 1. Current Liabilities Current liabilities are short-term obligations that a company or individual needs to pay within one year. These are crucial for managing day-to-day cash flows. Examples of Current Liabilities: Accounts Payable: Short-Term Loans: Accrued Expenses: Taxes Payable: Dividends Payable: Importance of Current Liabilities: Properly managing current liabilities is essential for maintaining liquidity, which ensures a business or individual can meet short-term financial obligations.

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