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