An obligation that legally binds an individual or company to settle a debt. When one is liable for a debt, they are responsible for paying the debt or settling a wrongful act they may have committed. For example, if John hits Jane's car, John is liable for the damages to Jane's vehicle because John is responsible for the damages. In the case of a company, a liability is recorded on the balance sheet and can include accounts payable, taxes, wages, accrued expenses, and deferred revenues. Current liabilities are debts payable within one year, while long-term liabilities are debts payable over a longer period.
Related information about liability:
- Liability - Wikipedia, the free encyclopedia
A liability can mean something that is a hindrance or puts an individual or group at a disadvantage, or something that someone is responsible for, or something ...
- Legal liability - Wikipedia, the free encyclopedia
Legal liability is the legal bound obligation to pay debts. In law, a person is legally liable when they are financially and legally responsible for something.
- Liability (financial accounting) - Wikipedia, the free encyclopedia
In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer ...
- Liability - Merriam-Webster Online
a : the quality or state of being liable. b : probability. 2. : something for which one is liable; especially : pecuniary obligation : debt —usually used in plural. 3 ...
- Liability | Define Liability at Dictionary.com
moneys owed; debts or pecuniary obligations ( opposed to assets ). b. Accounting. liabilities as detailed on a balance sheet, especially in relation to assets and ...
- Liability Definition | Investopedia
A company's legal debts or obligations that arise during the course of business operations. Liabilities are settled over time through the transfer of economic ...
- Liability - Legal Dictionary - The Free Dictionary
A comprehensive legal term that describes the condition of being actually or potentially subject to a legal obligation. Joint liability is an obligation for which more ...
- liability - definition of liability by the Free Online Dictionary ...
li·a·bil·i·ty (l -b l -t ). n. pl. li·a·bil·i·ties. 1. The state of being liable. 2. a. Something for which one is liable; an obligation, responsibility, or debt. b. liabilities The ...