What are long term and current liabilities?

What are long term and current liabilities?

David Weller (Co -author Teach Yourself: Setting Up A Small Business) gives expert video advice on: What is meant by cash flow?; What are overheads?; What is the difference between fixed assets and current assets? and more...

Liabilities are what you, or that is to say your business, owes to other people. Long term liabilities are those that take a long time to pay off, like your bank loan. Current liabilities are things like overdrafts, wages and salaries, and creditors, people you owe money to, that type of thing.