A liability is an obligation arising from a past business event. It is reported on a company’s balance sheet. Liabilities are also part of the basic accounting equation: Assets = Liabilities + Stockholders’ Equity. Liabilities are often viewed as claims against the company’s assets. However,...
What is a contingent liability? Give an example of a contingent liability that is usually recorded in the accounts. What is the definition of liability in accounting? What is a current liability? Please give us some examples of current liabilities. What is a contingent liability? Give an exampl...
The article explores how the system of liability in accounting is applied to charities in Great Britain.JonesRayThird Sector
A liability is an (existing) obligation towards another party and is reported on a company’sbalance sheet, like debts that small businesses owe to another business, organization, vendor, employee, or government agency.. This obligation may consist of paying money, delivering goods or rendering se...
A limited liability company (LLC) is a business structure that protects the owners from any losses, debts or legal liabilities that the business may incur.
A liability account in accounting refers to the account title found in the general ledger or in the balance sheet where the company's short-term and...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your ...
Definition:An estimated liability is a debt or obligation of an unknown amount that can be reasonably estimated. In other words, it’s aknown liabilitythat management knows exists, but there is no way of knowing the exact amount of the liability. Management can however estimate with reasonably ...
Learn about what liability is, and what it means to your business. Find out more accounting terms in the QuickBooks' Glossary.
An indemnity agreement is a contract that protects one party of a transaction from the risks or liabilities created by the other party of the transaction. Hold harmless agreement, no-fault agreement, release of liability, or waiver of liability are other terms for an indemnity agreement. ...
An asset is something of value that you own or that's owed to you. The loan would be an asset if you lent money to someone because they're obligated to repay you that amount. The loan would be a liability for the person who owes you the money. ...