liability (redirected from Civil liability)

Liability

A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation.

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liability

An obligation to pay an amount in money, goods, or services to another party. The balance sheet lists the liabilities. Also called debt. Compare asset. See also contingent liability, current liability.

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Liability. In personal finance, liabilities are the amounts you owe to creditors, or the people and organizations that lend you money. Typical liabilities include your mortgage, car and educational loans, and credit card debt.

When you figure your net worth, you subtract your liabilities, or what you owe, from your assets. The result is your net worth, or the cash value of what you own.

In business, liabilities refer to money a company owes its creditors and any claims against its assets.

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liability

(1) A debt or obligation. (2) A potential loss,such as a poorly trained,poorly supervised real estate agent who may be a liability.

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Liability

What Does Liability Mean?

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 benefits, including money, goods, and services.

Investopedia explains Liability

Recorded on the balance sheet (right side), liabilities include loans, accounts payable, mortgages, deferred revenues, and accrued expenses. Liabilities are a vital aspect of a company's operations because they are used to finance operations and pay for large expansions. They also can make transactions between businesses more efficient. For example, the outstanding money that a company owes to its suppliers would be considered a liability. Outside of accounting and finance, this term refers to any money or service that is currently owed to another party. One form of liability, for example, would be the property taxes that a homeowner owes to the municipal government. Current liabilities are debts payable within one year, and long-term liabilities are debts payable over a longer period.

Related Terms:
• Asset
• Balance Sheet
• Debt
• Accounts Payable—AP
• Current Liabilities