Liabilities: Difference between revisions

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imported>Doug Williamson
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Liabilities are represented in the balance sheet by credit balances.
Under the usual 'double entry' bookkeeping convention, liabilities are represented in the balance sheet by ''credit balances'' (often abbreviated to CR).




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* [[Capital]]
* [[Capital]]
* [[Compound instrument]]
* [[Compound instrument]]
* [[Credit]]
* [[Credit balance]]
* [[Credit balance]]
* [[Debit]]
* [[Disaggregation]]
* [[Disaggregation]]
* [[Discharge]]
* [[Discharge]]

Latest revision as of 17:02, 20 November 2023

1. Financial reporting - balance sheet.

In financial reporting, liabilities are present amounts or present obligations of a reporting entity arising from past transactions or events, the settlement of which may result in:

  • The transfer or use of assets, for example payments of money
  • The provision of services or
  • Other yielding of economic benefits in the future.


Examples include overdrafts, trade payables, accruals and provisions.


Under the usual 'double entry' bookkeeping convention, liabilities are represented in the balance sheet by credit balances (often abbreviated to CR).


2. Lending - borrowing.

More generally, liabilities are any obligations or amounts owed to others (whether or not they are obligations of a financial reporting entity).


See also