Verbull Word of the day
Finance glossary

Liabilities

Accounting · beginner
Definition

Debts and obligations a company owes to others.

Liabilities are what a company owes, including loans, accounts payable, and accrued expenses. Current liabilities are due within a year; long-term liabilities are due later. Subtracting total liabilities from total assets gives shareholders equity.

In a sentence

Its liabilities included a bank loan and unpaid bills to suppliers.

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