What is a liability?
28 November 2022 (Updated 28 November 2022)
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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
Tagged:
Accountancy