Define: Liabilities

UK Accounting Glossary

Definition: Liabilities


Quick Summary of Liabilities


Obligations of an entity to transfer economic benefits as a result of past transactions or events.



What is the dictionary definition of Liabilities?

Dictionary Definition


  1. The condition of being liable.
  2. An obligation, debt or responsibility owed to someone.
  3. A handicap that holds something back.

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Full Definition of Liabilities


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.


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Examples of Liabilities in a sentence


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.


Synonyms For Liabilities


debt, liability, duties, obligations, responsibilities


Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/liabilities/
Modern Language Association (MLA):
Liabilities. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. April 03, 2020 https://payrollheaven.com/define/liabilities/.
Chicago Manual of Style (CMS):
Liabilities. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/liabilities/ (accessed: April 03, 2020).
American Psychological Association (APA):
Liabilities. PayrollHeaven.com. Retrieved April 03, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/liabilities/

Definition Sources


Definitions for Liabilities are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.