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A financial obligation, debt, claim, or potential loss. Contingent liabilities are liabilities that will be incurred only when assets are sold. Contingent liabilities include selling costs for assets, income tax on capital gains realized through the sale of assets, and write-off of the unrecovered value of intangibles or natural resources. Current liabilities are debts or accrued amounts owed that are to be paid within a year. Current liability categories include accounts payable, notes payable, taxes payable, current portion of principal on intermediate-term or long-term debt, cash dividends payable, accrued interest and other accrued liabilities. Long-term liabilities, depending on the nature of the business and the proprietor's intent, may be debt with an extended repayment period such as a many-year mortgage on land and buildings, or debt that's intended to be permanent such as bonds issued to investors. (Also called long-term debt or fixed debt.)
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