Liabilities

4 articles

How Liabilities Work?

Last Updated: 10 June, 2024

In general, a liability is an obligation between one party and another not yet completed or paid for. In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales,...

Liabilities vs. Assets vs. Owner’s equity

Last Updated: 10 June, 2024

Assets are the things a company owns—or things owed to the company—and they include tangible items such as buildings, machinery, and equipment as well as intangible items such as accounts receivable, interest owed, patents, or intellectual property. If a business...

What Are Examples of Liabilities That Individuals or Households Have?

Last Updated: 10 June, 2024

Like businesses, an individual’s or household’s net worth is taken by balancing assets against liabilities. For most households, liabilities will include taxes due, bills that must be paid, rent or mortgage payments, loan interest and principal due, and so on....

What Is a Liability?

Last Updated: 10 June, 2024

A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services. Recorded on the right side of the balance sheet, liabilities...