Liabilities are your company's debts. In a sense, liabilities represent
the credit extended to your business. Liabilities include the bills you've
received, money you owe on credit cards, sales tax you owe the government,
employee withholdings you owe the government, and both short-term and long-term
QuickBooks distinguishes between two types of liabilities:
Debts your company expects to pay within a year, such as a
short-term loan or a bill.
Debts your company expects to pay off in more than one year.