We launch into discussions about liabilities. Here, it is important to remember that (similar to assets) there are both current and long-term liabilities. Current means liabilities that are due within 12 months and long-term means liabilities that exist beyond 12 months. These two sets of liabilities are kept separate on the Balance Sheet to indicate the difference in their nature (based on time).   Discuss the pros and cons of bonds? Also discuss some  liabilities?