Liability
A liability is the opposite of an asset. It is anything that you own that takes money away from you. For example, your utility bill is a liability because you lose money as a result of paying the bill.
In other words, a liability is anything that you own that will cause you to incur an expense. A liability account looks like this:
Liabilities
In other words, a liability is anything that you own that will cause you to incur an expense. A liability account looks like this:
Liabilities
- Money Payable to Supplier for 500 sheets of paper.
- $500 Monthly Wages Payable to Employees $700
- Taxes Payable to Government for Year 2008 $400