sajad torkamani

In a nutshell

A liability is a debt or obligation that a company owes to another party. Liabilities represent demands or claims on a company’s assets. They’re e an essential component of a balance sheet in providing a snapshot of a company’s financial health.


  • Loans (e.g., the company takes out a bank loan)
  • Accounts payable (e.g., an IT company hires contractors)
  • Wages
  • Taxes payable.
  • Office rent
  • Software subscriptions (e.g., Office 365, Photoshop, etc).


Tagged: Accounting

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