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noun Uncommon

liabilities

Liabilities (noun) means Debts or financial obligations that a person or company must eventually pay. Example: “The company's liabilities include loans, unpaid invoices, and taxes owed.”

noun
1
Debts or financial obligations that a person or company must eventually pay.
"The company's liabilities include loans, unpaid invoices, and taxes owed."
"Before buying the business, she reviewed its assets and liabilities carefully."

How to Use Liabilities

Learner’s notes

In plain EnglishThe money a person or business owes to others.

Common mistake

Liabilities are the opposite of assets on a balance sheet — assets are what you own, liabilities are what you owe.

Easily confused with
Common pairings
assets and liabilities current liabilities long-term liabilities
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Test yourself on “liabilities” A quick quiz — meaning, synonyms & usage

Fill the Gap

Can you complete this real example?

The company's _____ include loans, unpaid invoices, and taxes owed.

debts obligations payables

Related Words

Rhymes for liabilities

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Frequently Asked Questions

What does “liabilities” mean?

The word “liabilities” means debts or financial obligations that a person or company must eventually pay. In plain terms, the money a person or business owes to others.

How do you use “liabilities” in a sentence?

Here is “liabilities” used in a sentence: “The company's liabilities include loans, unpaid invoices, and taxes owed.”

What part of speech is “liabilities”?

“Liabilities” is a noun.

Is “liabilities” a common word?

“Liabilities” is an uncommon word in modern English.

What is the difference between liabilities and assets?

Liabilities are debts or financial obligations that a person or company owes and must eventually pay, while assets are resources of value that they own. Together, assets minus liabilities determine net worth or equity.

What is the difference between liabilities and expenses?

Liabilities are ongoing obligations to pay money in the future, such as a loan balance, while expenses are costs already incurred in running a business or household during a given period. A liability can result in future expenses, but the two are recorded differently in accounting.

What is the difference between current and long-term liabilities?

Current liabilities are debts or obligations due within a year, such as accounts payable, while long-term liabilities are obligations that extend beyond a year, such as a mortgage or long-term loan.

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Definitions: FreeDict original editorial