LIABILITIES

 Are present obligation of an entity

Present obligation is an obligation that arises through law, through
contractual agreement, or through constructive.
 To transfer an economic resource
Economic resource may be cash or non-cash asset, receivables, ppe, land,
and depending if there was a transfer between the creditor and the debtor,
and the debtor to the creditor of an economic resource.
 As a result of past events

Examples of Liabilities
 Accounts payable to suppliers for the purchase of goods.
 Amounts withheld from employees for taxes and the contribution to the
SSS.
 Accruals for salaries, interest, rent, taxes, product warranties, and profit
sharing bonus.
 Cash dividends declared but not paid.
 Deposits and advances from customers.
 Debt obligations for borrowed funds - notes, mortgages and bonds
payable.
 Income tax payable.
 Unearned revenue.

Provisions and Contingent Liabilities - tackles future obligations