Definition, Meaning & Synonyms
liabilities
Noun
/ˌlaɪəˈbɪlɪtiz/
Definition
Liabilities are the legal financial debts or obligations that an individual or company owes to another party.
Examples
- The company’s liabilities exceeded its assets, leading to bankruptcy.
- Understanding your personal liabilities is essential for good financial planning.
- The accountant prepared a balance sheet that clearly listed all current and long-term liabilities.
Meaning
In financial terms, liabilities refer to what an entity owes to others, often resulting from past transactions or events. These can include loans, accounts payable, mortgages, deferred revenues, and other similar debts.
Synonyms
- Debts
- Obligations
- Responsibility
- Financial burdens
- Accounts payable
