Liabilities are defined as a company's legal debts or obligations that arise during the course of business operations.
 | | | Liability | | A liability is a company's financial debt or obligations that arise during the course of its business operations. Liabilities are settled over time through the transfer of economic benefits including money, goods or services. Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues and accrued expenses. | | | Breaking it Down: | | Generally, liability refers to the state of being responsible for something, and this term can refer to any money or... Read More | | | | | | | | | Accrued Liability | | An accounting term for an expense that a business has incurred but has not yet paid. A company can accrue liability for any number of items, such as a pension account that will pay retirees in the future. Read More | | | | Shareholders' Equity | | A firm's total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Read More | | | | | | | Liability Insurance | | Any type of insurance policy that protects an individual or business from the risk that they may be sued and held legally liable for something such as malpractice, injury or negligence. Read More | | | | | | | | | | Follow Us: |  |  | | | | | | |
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