Liabilities Definition – What are Liabilities?

Accounting Glossary 

Liabilities definition, defining the term liabilities and discussing key points in the definition. Most have an idea what a liability is but looking up the definition in a glossary and reviewing the wording of the definition can often give more insights into the meaning of the word liabilities. Most know liabilities include a future payment but it is important that this future payment may be something other than and that a liability is a result of a past transaction, meaning something in the past must have happened to make the liability that is owed in the future. Liabilities – Creditor’s claims on an organization’s assets; involves a probable future payment of assets, products, or services that a company is obligated to make due to past transactions or events.