Liabilities are obligations that a company owes to others. They represent the debt that a company has incurred and are typically classified as either current liabilities or non-current liabilities. Current liabilities are obligations that are due for payment within the current accounting period. Examples of current liabilities include accounts payable, short-term loans, and taxes owed. Non-current liabilities, also known as long-term liabilities, are obligations that are not due for payment within the current accounting period. They are usually due for payment in more than one year's time. Examples of non-current liabilities include long-term loans, bonds payable, and deferred tax liabilities. Liabilities are important for a company because they represent obligations that must be paid in the future and can affect the company's financial health. They are shown on a company's balance sheet along with the company's assets. The difference between a company's assets and its liabilities is known as its equity or net worth.