Liability
Investment
The claim on the assets of a company or individual - excluding ownership equity. The obligation to make a payment to another.
The claim on the assets of a company or individual – excluding ownership equity. The obligation to make a payment to another.
- — Mortgage Servicing Glossary retrieved 2014-06-15
Auto Insurance
A legally enforceable financial obligation caused by negligence.
- — Auto Insurance Glossary retrieved 2014-05-19
Homeowners Insurance
A legally enforceable financial obligation caused by negligence.
- — Homeowners Insurance Glossary retrieved 2014-05-16
Personal Finance
In personal finance, liabilities are the amounts you owe to creditors, or the people and organizations that lend you money. Typical liabilities include your mortgage, car and educational loans, and credit card debt.
When you figure your net worth, you subtract your liabilities, or what you owe, from your assets. The result is your net worth, or the cash value of what you own.
In business, liabilities refer to money a company owes its creditors and any claims against its assets.