liabilities

nounC1Rare in speech; mostly a word you read · #11,854 of 15,258leans written

Liabilities are everything a business owes. Total liabilities, current liabilities, assets and liabilities.

The whole of accounting rests on one equation: assets equal liabilities plus equity, so the books must balance by construction. Current liabilities fall due within a year and long-term ones later, and the split is what tells you whether a company can pay its way.

Definitions of liabilities

1nounliabilitiesEverything a business owes.C1
“The company's liabilities were far greater than its assets, so it went bankrupt.”

liabilities is debts owed.

Where it comes from

liability comes from liable + -ity.

Etymology from Wiktionary, CC BY-SA

Practised in Business & Money

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liabilities in the wild

In finance, equity is an ownership interest in property that may be subject to debts or other liabilities.
Equity (finance)
Equity is measured for accounting purposes by subtracting liabilities from the value of the assets owned.
Equity (finance)
Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Balance sheet
A standard company balance sheet typically lists assets, then liabilities, then owner's equity.
Balance sheet
Key examples of current liabilities include accounts payable, which are generally due within 30 to 60 days, though in some cases payments may be delayed.
Current liability

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From Wikipedia, CC BY-SA 4.0. These sentences were written by other people about their own subjects; they are here to show the word at work, not as anybody’s opinion.

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