Business, Legal & 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.

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.

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
Modern Language Association (MLA):
Liabilities. Payroll & Accounting Heaven Ltd. August 05, 2021
Chicago Manual of Style (CMS):
Liabilities. Payroll & Accounting Heaven Ltd. (accessed: August 05, 2021).
American Psychological Association (APA):
Liabilities. Retrieved August 05, 2021, from website:

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: 14th February, 2020 | 41 Views.