Liabilities refer to the debts which may include unpaid credit card bills, loans, or mortgages. Having a liability is having legal responsibility to pay your dues. In books of accounts, liabilities are depicted on the right and assets on the left. They refer to all things that you have borrowed and thus owe. For instance, …
Post Type Archives: Glossary
Liability
Liability refers to the legal obligation of an individual or a business to repay debts or fulfil other financial responsibilities. It can include loans, accounts payable and other financial obligations. Liabilities are recorded on a company’s balance sheet and are used to assess its financial health.