What is a liability?

In a nutshell

A liability is something that a company owes, usually a sum of money.

Examples

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

Sources

• Liabilities – Investopedia