Liability

What is liability?

Liabilities are all debts of a person or organisation that are payable at some time or in the future. This includes both short-term liabilities, such as accounts payable and taxes payable within a year, and long-term liabilities, such as loans and mortgage repayments that are paid off over several years. Liabilities are shown on a company’s balance sheet and are used to assess a company’s financial position and health.