definition of liability


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liability
Financial obligation, or the cash amount that must be made at a specific point in time, to satisfy the contractual terms of an obligation.

Companies record liabilities on the balance sheet and such as accounts payable, wages, taxes, accrued expenses, and deferred revenues.

Current liabilities are debts payable within one year, while long-term liabilities are debts payable over a longer period of time.


see also
liabilities








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