[GNC] Liabilities vs Expenses.

[John Ralls]

> On Feb 17, 2025, at 22:56, John Walker via gnucash-user <gnucash-user at gnucash.org> wrote:
> 
> In standard bookkeeping, a liability is anything that a business owes for more than the accounting period which is usually 12 months.  A mortgage is a good example.  An expense is something that is paid out within the accounting period.  The electricity bill is a good example.


Wherever did you get that idea?

See https://www.investopedia.com/terms/l/liability.asp and note in particular the section about 1/4 down the page “Current (near-term) Liabilities”:
"Analysts ideally want to see that a company can pay current liabilities that are due within a year with cash. Some examples of short-term liabilities include payroll expenses and accounts payable which can include money owed to vendors, monthly utilities, and similar expenses.”

Regards,
John Ralls