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Finance: What is liability? 3 Views

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Description:

What is liability? Any type of lawful financial obligation that a company bears is categorized for accounting purposes as a liability. Liabilities can include debts, accounts payable, deferred revenues, deferred compensation, taxes and expenses still outstanding, In legal terms, liability can refer to any kind of responsibility that falls on the part of one party to owe an injured party.

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Transcript

00:00
Finance allah shmoop What is a liability What is it
00:07
it's what you owe you bought four million gumballs on
00:10
credit for your party pack for the parade the money
00:13
is owed to gumballs are us in ninety days that's
00:18
a short term liability Alright next example you borrowed eighty

00:22
three million dollars to set up your new do dental
00:24
drive through service and that money is due in twelve
00:28
years at seven percent interest a year that's A long
00:31
term liability Why long term Because it comes due in
00:35
over a year and that's basically it liability comes in
00:39
two flavors short and long term and it's one of
00:41
the key elements of the balance sheet as it lives
00:43
in this space ride over here So yeah that's a
00:47
liability all this crap time now considering how many gumballs
00:51
you've consumed in the past month you really should get
00:53
yourself to a good drive through dentist or maybe sleep 00:00:56.998 --> [endTime] in mr
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