Oct 30, 2025

Liabilities

• Liabilities are what a business owes. Money, goods, or services it must pay or provide to others in the future.

How do I remember it?

• Think of this simple phrase:

• "Liabilities take things away.”

• Liabilities = what you owe!

Real world example

• Business Liabilities include bank loans, legal obligations, later payments.

• Personal Assets include, credit card debt, student loans, bills & dues.