Definition of liability

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TeachMeFinance.com - explain liability



liabilities -- Includes accounts payable (money you owe to suppliers), plus all current costs of doing business (mortgage payments, insurance, taxes, salaries, utilities).

another definition...

Liability -- Debt owed by the company such as bank loans or accounts payable.

another definition...

liability -- an item of value that is part of the overall debt or obligation of a person or business. For example, a mortgage is a liability of the homeowner/borrower, but the same mortgage is an asset of the savings and loan/lender. At savings institutions, savings deposits and all borrowed money are considered liabilities. Net worth, or regulatory capital, is accounted for as a liability because it is an obligation of the institution to its owners. See asset.

historic definition...

Liabilities -- Obligations ; debts. Liability. Responsibility for loss or damage ; an obligation. For the liability of an agent (or broker) see Agent.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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