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What is Liability?

As a general statement, a liability refers to some form of currency (money or service) that is owed from one party to another, typically in the form of debt or a balance outstanding.

On a balance sheet, a company’s liabilities would include its loans, accounts payable, outstanding debt. Short-term liabilities are generally those owed within a year, whereas long-term liabilities might stretch beyond that.

Keywords: balance sheet, debt, accounts payable, liability, Currency, debt obligations, cost of money,