What are Liabilities in Accounting?

What are Liabilities in Accounting?

What are Liabilities?
Liabilities are the debts and obligations of the business.


Liability is the obligation of the business to provide a benefit or asset on a future date. We have discussed credit transactions. Whenever a person purchases something on credit he promises to pay for the goods on a future date. This is his obligation to pay cash at a future date and thus it becomes his liability.

For What is asset ? Click here or for What is capital? Click here

Leave a Comment

Your email address will not be published. Required fields are marked *