In accounting, liabilities are the amounts a business owes to other people or organ izations. This could include loans from a bank, unpaid bills to suppliers, wages owed to employees, or taxes that haven’t been paid yet. Liabilities represent financial obligations or debts that a com pany or individual owes to others. This could be loans, bonds, or accounts payable. They entail a commitment to sacrifice economic benefits in the future. Liabilities often arise from legal or contractual agreements. Liabilities are legally binding obligations that are payable to another person or entity. Learn the characteristics, examples, and presentation of liabilities in accounting, and the difference between assets and liabilities . Liabilities are financial obligations that a person o r company owes to others, often in the form of money. Current liabilities are short-term financial obligations due within one year, while...
