The liabilities section of the balance sheet is where you keep track of the company’s debts. The range of numbers for liabilities is 2000 to 2999 in computerized accounting programs.
Liabilities are also classified as short- or long-term. Short-term liabilities are debts you need to pay in one year or less. Long-term liabilities are debts that you pay over the course of more than one year. The short-term liabilities appear first in the liability section of the balance sheet.
Here are examples of key short-term liability accounts:
• Accounts Payable (2000) This account is used to track all the money you owe to suppliers, vendors, contractors, and consultants who must be paid in less than one year. Most of these debts ...