Liabilities are reported on a balance sheet and are usually divided into two categories:

• Current liabilities — these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations and others.
• Long-term liabilities — these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pemsion obligations, and long-term product warranties.