liability

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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 ?
Senate Majority Leader Juan Miguel Zubiri listed P316,171,328.67 assets, P133,319,758.33 in liabilities and P182,851,570.34 in net worth.
For example, the satisfaction presumption provides that such an entity that is a partner is generally presumed to be able to satisfy its obligations under local law in determining how partnership liabilities are allocated, notwithstanding its actual net value.
TEI believes that the FASB's goal of improving consistency in the recognition and measurement of tax benefits of uncertain tax positions can be achieved through the adoption of an approach based on current accounting principles governing contingent liabilities, including taxes, under FAS 5.
6, Recognition and Measurement of Certain Liabilities and Expenditures in Governmental Fund Financial Statements.
Each member is liable for his or her proportionate share of total liabilities, but may be assessed for additional funds if needed.
The most critical element of the purchase and sale agreement, especially for a forced or quick sale or for the sale of a facility with compliance problems, is the allocation of liabilities. The purchaser will want to draft contract terms that require the seller to maintain responsibility for liabilities that relate to events occurring before the sale date (even if they do not become apparent until after that date).
This allows the purchasing entity to buy what is effectively an ongoing business without acquiring any preexisting liabilities. Although creditors and ongoing litigation may require the selling entity to settle known liabilities prior to the sale's consummation, future liabilities that might arise remain the responsibility of the seller, which, at that point, has few or no assets at risk.
* Fair value measurement method -- Measure servicing assets or servicing liabilities at fair value at each reporting date and report changes in fair value in earnings in the period in which the changes occur.
Under fair-value reporting, companies have to "mark to market" their assets and liabilities, or report the current market value of such items as invested assets and liabilities.
Recently the Tax Court considered the special rules that apply to the allocation of liabilities to LLC members.
The offer should include all liabilities to be covered by the compromise, the legal grounds for compromise, the amount the taxpayer proposes to pay, and the payment terms--which include amounts and due dates.
Specifically, we are very concerned about the requirement to disclose, pursuant to Item 302(c), additional confidential company information relating to accruals for contingent income and franchise tax liabilities. Because of TEI's focus on business tax issues, we shall limit our comments on the proposed rules to Item 302(c) and the issues surrounding disclosure of such accruals.