What are Liabilities? Explained with Examples

Liability: it’s a word I’m sure you’ve used many times before - possibly without knowing exactly what it means.

But even though you may not know the exact definition, I’ll bet you have a basic understanding of what a liability is.

If you say that a liability is “something you owe” or “something that takes money out of your pocket” you’d be on the right track. But there’s more to it than that, so let’s take a closer look at what exactly liabilities are so that you can know for sure what to include as liabilities on your balance sheet.

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Timestamps:
00:00 What are Liabilities? Explained with Examples
00:15 Liabilities explained
00:34 Is a loan or mortgage a liability?
02:03 Is credit card debt a liability?
03:14 What are liabilities used for?
03:32 Personal liability definition
03:56 Business liability definition
04:09 Liability accounting definition

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Please note that Bullseyemoney is not a financial or tax adviser. Our videos are here to inform you and the information provided does not constitute financial, taxation, legal, business or other professional advice and should not be relied upon as such. Bullseyemoney is not liable or responsible for any financial, tax, legal, business or other decisions you make. If you are looking for advice, you should seek a suitable and qualified adviser.

[GoodBoyDanny]

I love your voice, it makes accounting better

[vanessavaldez]

I love the way you explained it, it is not so overwhelming thank you