liability

Dictionary: li·a·bil·i·ty   (lī'ə-bĭl'ĭ-tē)

1. The state of being liable.
2. 1. Something for which one is liable; an obligation, responsibility, or debt.
   2. liabilities The financial obligations entered in the balance sheet of a business enterprise.
3. Something that holds one back; a handicap.
4. Likelihood.

A company's legal debts or obligations that arise during the course of business operations. These are settled over time through the transfer of economic benefits including money, goods or services.

Investopedia Says:
Recorded on the balance sheet (right side), liabilities include loans, accounts payable, mortgages, deferred revenues and accrued expenses. Liabilities are a vital aspect of a company's operations because they are used to finance operations and pay for large expansions. They can also make transactions between businesses more efficient. For example, the outstanding money that a company owes to its suppliers would be considered a liability.

Outside of accounting and finance this term simply refers to any money or service that is currently owed to another party. One form of liability, for example, would be the property taxes that a homeowner owes to the municipal government.

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

Related Links:
Knowing what the company's financial statements mean will help you to anaylze your investments. Breaking Down The Balance Sheet
Learn to use the composition of debt and equity to evaluate balance sheet strength. Evaluating A Company's Capital Structure
Learn about the components of the statement of financial position and how they relate to each other. Reading The Balance Sheet
Learn this easy-to-understand technique of analyzing a company's financial statements and reports. Introduction To Fundamental Analysis
Learn about debt ratios and how to use them to assess a company's financial health. You could save a lot of money! Debt Reckoning
Investors need to know how to detect signs of looming bankruptcy. The Z-score can help. Z Marks The End

In general: amount owed by an organization or individual, such as the amount owed by advertisers for space or time purchased.

Magazines: issues remaining to be served on all active subscriptions. As copies are served, the liability on those subscriptions is reduced and earned income increases at a value equal to the per-copy value of the issues served. Adjustments must be made to the liability amount if a subscription is canceled prior to expire or if a canceled subscription is reinstated.

1. General. A legally enforceable claim on the assets of a company, excluding owner's equity, or the property of an individual, calling for a transfer of assets at a determined future date. Also, any item appearing on the right hand side of a double-entry accounting system or balance sheet.

2. Banking. The funds owed by a bank, including time deposits and demand deposits, borrowings from a Federal Reserve Bank or other banks, and Federal Funds in the interbank market. Deposit liabilities, representing claims by a bank's customers on the assets of the bank, are the major source of funds for bank lending. Other liability categories include Managed Liabilities, or deposits that banks actively solicit from other banks; Brokered Deposits which usually are certificates of deposit secured through a broker-dealer; and Off-Balance Sheet Liabilities which are liabilities that are not direct obligations on the issuing bank, but represent contingent obligations that may become payable in the future.

1. a Debt or financial obligation. Contrast with Asset.
Example: One who borrows $75,000 for a Mortgage loan incurs a liability to repay that loan.
Example: A General Partner in a Partnership has a personal liability for debts of the partnership in the event the partnership cannot repay its debt.

2. A potential loss.
Example: One should purchase sufficient liability insurance to protect against possible legal claims of someone who gets injured on one's property.

noun

1. A condition of owing something to another: arrearage, arrears, indebtedness, debt, obligation. See pay/owe.
2. The condition of being laid open to something undesirable or injurious: exposure, openness, susceptibility, susceptibleness, vulnerability, vulnerableness. See protection/exposure.
3. Something, such as money, owed by one person to another: arrearage, arrears, debt, due, indebtedness, obligation. See obligation, pay/owe.

Definition: answerability, responsibility
Antonyms: immunity, irresponsibility, unaccountability

n

Definition: burden, debt
Antonyms: asset

The state of being bound by law or justice to do something or to make good something; legal responsibility.

A comprehensive legal term that describes the condition of being actually or potentially subject to a legal obligation.

Joint liability is an obligation for which more than one person is responsible.

Joint and several liability refers to the status of those who are responsible together as one unit as well as individually for their conduct. The person who has been harmed can institute a lawsuit and recover from any or all of the wrongdoers — but cannot receive double compensation, for instance, the full amount of recovery from each of two wrongdoers.

Primary liability is an obligation for which a person is directly responsible; it is distinguished from secondary liability which is the responsibility of another if the party directly responsible fails or refuses to satisfy his or her obligation.

An obligation or debt.

Financial or legal responsibility.

"Liable" redirects here. For "Libel", see Libel (disambiguation).

Contents 1 External links

In the most general sense, a liability is anything that is a hindrance or puts an individual at a disadvantage. Although the term has very particular definition in the realm of finance, it is also used in non-finance contexts. The word liability may also refer to individual or an attribute or a component that puts a team or group at a disadvantage.

Liability may also refer to:

• liability (financial accounting), an obligation of an entity arising from past transactions or events
  • current liability
  • Long-term liabilities
• legal liability
• accrued liabilities
• public liability

External links

Look up liability in Wiktionary, the free dictionary.

• Liability definition and explanations given in clear terms

This entry is from Wikipedia, the leading user-contributed encyclopedia. It may not have been reviewed by professional editors (see full disclaimer)

Dansk (Danish)
n. - ansvarlighed, ansvar, produktansvar, erstatningsansvar, erstatningsforpligtelse, tilbøjelighed, gæld, passiv, ulempe, hæmsko, belastning

idioms:

• limited liability company    aktieselskab (med begrænset ansvar)

Nederlands (Dutch)
aansprakelijkheid, wettelijke aansprakelijkheid, schuld, blok aan het been, risico

Français (French)
n. - (Jur) responsabilité, handicap, charge, (fig) poids mort, passif (npl), dette (npl)

idioms:

• limited liability company    société à responsabilité limitée

Deutsch (German)
n. - Haftung, Anfälligkeit, Verpflichtung, Belastung

idioms:

• limited liability company    Gesellschaft mit beschränkter Haftung (GmbH)

Ελληνική (Greek)
n. - προδιάθεση, ροπή, υποχρέωση, (μτφ.) επιβάρυνση, βάρος, φόρτωμα, (νομ.) ευθύνη, υπαιτιότητα, ενοχή, (οικον.) οφειλή, υποχρέωση, (πληθ.) παθητικό

idioms:

• limited liability company    (νομ.) εταιρία περιορισμένης ευθύνης

Italiano (Italian)
responsabilità, debito

idioms:

• limited liability company    Società a Responsabilità Limitata

Português (Portuguese)
n. - responsabilidade (f), obrigação (f), compromisso (m)

idioms:

• limited liability company    empresa por cotas de responsabilidade limitada

Русский (Russian)
обязанность, ответственность, обязательство, склонность, помеха

idioms:

• limited liability company    компания с ограниченной ответственностью

Español (Spanish)
n. - responsabilidad, inconveniente, estorbo, obligaciones, pasivo

idioms:

• limited liability company    sociedad de responsabilidad limitada

Svenska (Swedish)
n. - ansvar, ansvarsskyldighet, skyldighet, betalningsskyldighet, förpliktelse, mottaglighet, benägenhet, skulder, skuldförbindelser, passiva, belastning

中文（简体）(Chinese (Simplified))
责任, 倾向, 债务

idioms:

• limited liability company    股份有限公司

中文（繁體）(Chinese (Traditional))
n. - 責任, 傾向, 債務

idioms:

• limited liability company    股份有限公司

한국어 (Korean)
n. - 경향이 있음, 책임, 불리한 일

日本語 (Japanese)
n. - 責任, 義務, 負債, なりやすいこと, 不利なもの

العربيه (Arabic)
‏(الاسم) مسؤوليه قانونيه, دين, عائق‏

עברית (Hebrew)
n. - ‮אחריות, חובה, חבות, נטל, נטייה, מעמסה‬

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