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Liabilities: meaning, definitions and examples

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liabilities

 

[ ˌlaɪəˈbɪlɪtiz ]

Noun
Context #1 | Noun

financial accounting

Liabilities are debts or obligations that a company owes to outside parties. These can include loans, accounts payable, accrued expenses, bonds, and other financial obligations.

Synonyms

debts, indebtedness, obligations.

Which Synonym Should You Choose?

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Word Description / Examples
liabilities

Used in formal financial and legal contexts to refer to all the amounts a company or person owes that must be paid.

  • The company's liabilities exceeded its assets.
  • We need to account for all liabilities in our financial statement.
debts

Refers to specific amounts of money that are owed or due from one party to another.

  • He couldn't sleep because of his mounting debts.
  • Paying off student debts can take many years.
obligations

Refers to duties or commitments, often financial, that someone is bound to fulfill.

  • She felt a strong obligation to support her family.
  • The loan comes with certain obligations you must meet.
indebtedness

Typically used in formal and legal contexts to discuss the state of being in debt, often significant in amount.

  • The company's high level of indebtedness is a cause for concern.
  • Indebtedness has become a major issue for the government.

Examples of usage

  • Companies must carefully manage their liabilities to ensure they can meet their financial obligations.
  • Long-term liabilities are debts that are due beyond one year.
  • Accounts payable is a common type of liability found on a company's balance sheet.

Translations

Translations of the word "liabilities" in other languages:

🇵🇹 responsabilidades

🇮🇳 दायित्व

🇩🇪 Verbindlichkeiten

🇮🇩 kewajiban

🇺🇦 зобов'язання

🇵🇱 zobowiązania

🇯🇵 負債

🇫🇷 passifs

🇪🇸 responsabilidades

🇹🇷 yükümlülükler

🇰🇷 부채

🇸🇦 الالتزامات

🇨🇿 závazky

🇸🇰 záväzky

🇨🇳 负债

🇸🇮 obveznosti

🇮🇸 skuldir

🇰🇿 міндеттемелер

🇬🇪 ვალდებულებები

🇦🇿 öhdəliklər

🇲🇽 responsabilidades

Etymology

The word 'liabilities' originated from the Middle English word 'liabilite', which came from the Old French 'liable', meaning 'bound or obligated'. The concept of liabilities in accounting has been crucial for businesses to track their financial obligations and manage their debt effectively.

See also: liable.

Word Frequency Rank

Ranking #3,939, this word is part of upper-intermediate vocabulary. While not among the most basic terms, it appears often enough to be valuable for advanced communication.