liability

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Related to liabilities: Current liabilities, Assets and Liabilities, Accrued liabilities, Contingent liabilities

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.

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.

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.

liability

a claim on the resources of an individual or business in respect of monies borrowed. A liability is thus a form of DEBT, for example a bank overdraft or LOAN, a building society MORTGAGE. See ASSET, BALANCE SHEET.

liability

a claim on the resources of an individual or business in respect of monies borrowed. A liability is thus a form of DEBT, for example, a bank overdraft or LOAN, a building society MORTGAGE. See ASSET, BALANCE SHEET.

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.

References in periodicals archive ?
More and more, generally accepted accounting principles use present value techniques to assign amounts to specific assets and liabilities.
If such instruments were recognized as liabilities, however, changes in their values before they either expire worthless or are exercised would affect net income.
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pension funds to put more focus on matching the liabilities in their funds and as a result, many have increased their allocations to conventional and index-linked gilts to reduce risk.
maintained that the deficiencies and interest were liabilities arising out of state or Federal law and the acts giving rise to the liabilities occurred in 1986, 1987 and 1988, more than three years prior to 1992.
The issue is what types of direct, integration or exit costs should be accrued as liabilities in a purchase business combination under Opinion no.
Companies that must recognize significant additional pension liabilities should carefully weigh the financial statement impact.
Environmental Remediation Liabilities is also available for downloading, free-of-charge, on the AICPA Accountants Forum on CompuServe.
752 provides that a partner's basis in its partnership interest includes its share of partnership liabilities.
Issued in February 2006, FAS 155 amends FAS 133, Accounting for Derivative Instruments and Hedging Activities and FAS 140, Accounting for Transfers and Servicing of Financial Assets and Extinguishments of Liabilities.
Prospective investors and lenders are also understandably concerned about unexpected cleanup costs, delays and environmental liabilities that can derail an otherwise promising project.
Insurance agents and brokers, for example, have fiduciary duties and corresponding liabilities, as do executors of estates, trustees of organizations, and guardians.