Difference between revisions of "Liabilities"

Revision as of 13:16, 15 December 2018

Liabilities (alternatively known as debtors' equity) are obligations of a legal entity to its creditors. In other words, liabilities are the financial rights or claims of creditors to some assets that a legal entity currently owns. Liabilities come due in the future. They are made up of debts that the company owes to other legal entities. Liabilities may include accounts payable, loans and credit card balances; liabilities can be found on the balance sheet.

Liabilities. Obligations that come due in the future. Liabilities are the financial rights or claims of creditors to assets.

Bookkeeping. Recording, filing, and retrieving of financial data, as well as producing those financial reports that are required by laws.

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-[[Liabilities]] are obligations that come due in the future. In other words, ''liabilities'' are either the financial rights or claims of creditors to [[organization]]'s assets. ''Liabilities'' can also refer to a group of [[financial account]]s that record those obligations.
+[[Liabilities]] (alternatively known as [[debtors' equity]]) are obligations of a [[legal entity]] to its [[creditor]]s. In other words, [[liabilities]] are the financial rights or claims of [[creditor]]s to some assets that a [[legal entity]] currently owns. [[Liabilities]] come due in the future. They are made up of debts that the company owes to other [[legal entity|legal entiti]]es. [[Liabilities]] may include [[accounts payable]], [[loan]]s and credit card balances; [[liabilities]] can be found on the [[balance sheet]].
 ==Definitions==
 According to [[College Accounting: A Practical Approach by Slater (13th edition)‎]],
-:[[Liabilities]].
+:[[Liabilities]]. Obligations that come due in the future. Liabilities are the financial rights or claims of creditors to assets.
 ==Related concepts==