Question

What is the meaning of Liability in Accounting ?

Answer 1

Answer:

hey karthik

A liability is something a person or company owes, usually a sum of money. ... In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date.

Explanation:

hope it helps you

Answer 2

Answer:

Hi Kartik

Explanation:

The definition of liability in financial accounting is a business’s financial responsibilities. A common liability for small businesses are accounts payable, or money owed to suppliers, according to Accounting Coach.

Liabilities are found on a company’s balance sheet, a common financial statement generated through financial accounting software. They are also referred to as “payables” in accounting.

All businesses have liabilities, except those who operate solely operate with cash. By operating with cash, you’d need to both pay with and accept it—either with physical cash or through your business checking account.

Hope it helps..

~THANKYOU.