What the different between: liability, current liability, liabilities Contingencies, loss Contingencies?

Question

What the different between: liability, current liability, liabilities Contingencies, loss Contingencies?

Answer 1

A liability is an amount owed

A current liability is a liability due within a year

A loss contingency is a possible loss like a a lawsuit.  If it is probable that there will be a loss and the the loss can be estimated then we should record the liability.

Answer 2

In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.individual or group must adopt corporate charter and file it with the state.

A contingent liability is a potential liability…it depends on a future event occurring or not occurring.

loss contingencies are posting of a future loss that may result from some event or happening (e.g., probable damages from a lawsuit). Loss contingencies that are probable should be booked by a charge to the loss account and a credit to the estimated liability.