Liabilities are legally binding obligations that are payable to another person or entity. Learn the characteristics, examples, and presentation of liabilities in accounting, and the difference between assets and liabilities . Liabilities represent financial obligations or debts that a com pany or individual owes to others. This could be loans, bonds, or accounts payable. They entail a commitment to sacrifice economic benefits in the future. Liabilities often arise from legal or contractual agreements. LIABILITY definition: 1. the fact that someone is legally responsible for something: 2. debts: 3. something or someone…. Learn more. In accounting, liabilities are the amounts a business owes to other people or organ izations. This could include loans from a bank, unpaid bills to suppliers, wages owed to employees, or taxes that haven’t been paid yet.
