Liabilities are the financial obligations and debts of an entity arising from past transactions and occurring during the course of business operations. These financial obligations are paid by the accounting entity to external parties over time via the transfer of economic benefits including money, goods or services. External parties include banks, other financial institutions, creditors and government agencies. Liabilities include credit card debt, overdrafts, accounts payable, term loans and mortgages.
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Scooped by
Peter John Baskerville
onto Basic Accounting Concepts July 20, 2011 12:24 PM
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