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In the most general sense, a liability is anything that is a hindrance, or puts one at a disadvantage.
In accounting In accounting, a financial liability is something that is owed to another party. This is typically contrasted with an asset which is something of value that you own. It is said, "assets put cash in your pocket, liabilities take cash out of your pocket." The basic accounting equation relates assets, liability, and capital (or equity) thus: Accountancy (British English) or accounting (American English) is the process of maintaining, auditing, and processing financial information for business purposes. ...
In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ...
In business and accounting an asset is anything owned, whether in possession or by right to take possession, by a person or a group acting together, e. ...
Basic accounting equation is the fundation for the whole double-entry book-keeping system. ...
liabilities + equity = assets where assets are what you own, liabilities are what you owe to others, and equity is what you have contributed to the venture.
In technical terms, liabilities are: The future sacrifice of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions and other past events. (Statements of Accounting Concepts, AARF, 1997). Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the International Accounting Standards Board(IASB)link title. The International Accounting Standards Board (IASB) was founded on April 1, 2001 as the successor of IASC based in London, UK. IASB is responsible for setting International Accounting Standards. ...
Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.
Clasification of liabilities Liabilities are reported on a balance sheet and are usually divided into 2 categories: In formal bookkeeping and accounting, a balance sheet is a statement of the financial value (or worth) of a business or other organisation (or person) at a particular date, usually at the end of its fiscal year, as distinct from a profit and loss statement (P&L, also known as...
- Current liabilities - these liabilities are reasonably expected to be liquidated within a year. They usually include payables (wages, accounts, taxes, etc, payables), unearned revenue (see adjusting entries), portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.
- Long-term liabilities - these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, long-term product warranties, etc.
In accounting, current liabilities are considered liabilities of the business that are due within the fiscal year. ...
Adjusting entries are journal entries usually made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred. ...
Long-term liabilities are liabilities with a future benefit over one year, such as notes payable that mature greater than one year. ...
Bonds can refer to: A financial bond (including a junk bond or a zero-coupon bond) Barry Bonds A chemical bond (including the ionic bond, covalent bond, coordinate covalent bond, metallic bond, hydrogen bond, Carbon-carbon bond, Disulfide bond and Glycosidic bond) This is a disambiguation page — a navigational aid...
In law - In commercial law, limited liability is a form of business ownership in which business owners are legally responsible for no more than the amount that they have contributed to a venture. If for example, a business goes bankrupt an owner with limited liability will not lose unrelated assets such as a personal residence (assuming they do not give personal guarantees). This is the standard model for larger businesses, in which a shareholder will only lose the amount invested (in the form of stock value decreasing). For an explanation see business entity.
- Manufacturer's liability is a legal concept in most countries that reflects the fact that producers have a responsibility not to sell a defective product
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Fatale is also the title of a comic book published in the mid-1990s by Broadway Comics. ...
// Use of the term The concept of property or ownership has no single or universally accepted definition. ...
Cassio. ...
In moral philosophy, the word responsibility has at least two related meanings: The obligation to answer for actions. ...
Civil law has at least three meanings. ...
for other uses please see Crime (disambiguation) A crime is an act that violates a political or moral law. ...
Commercial law or business law is the body of law which governs business and commerce and is often considered to be a branch of civil law and deals both with issues of private law and public law. ...
Limited liability (LL) is liability that is limited to a partner or investors investment. ...
Bankruptcy is a legally declared inability or impairment of ability of an individual or organization to pay their creditors. ...
The term business entity refers generally to any organization engaged in business activities, regardless of legal structure. ...
An example (from both accounting and law) Money that you have accumulated is an asset to you. It is something of value that you own. If you take your money to a bank and deposit it there, it becomes a liability to the bank (the bank owes you the money). The money is both an asset to you and a liability to the bank.
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