Business, Legal & Accounting Glossary
Obligations of an entity to transfer economic benefits as a result of past transactions or events.
Bank loans, accounts payable, accrued expenses, and any other monies owed by a business to another entity. Although liabilities show as negative amounts on a spreadsheet, having liabilities many not necessarily be a negative in the financial world.
Banks won’t lend money to clients whose liabilities outweigh their assets by a large margin.
That company’s budget showed large liabilities during the fiscal year in which they upgraded all of their systems, but the savings they have experienced since then has more than compensated.
debt, liability, duties, obligations, responsibilities
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This glossary post was last updated: 22nd November, 2021 | 0 Views.