Liability is an accounting term that is used to describe any kind of financial obligation that a business has to pay at the end of accounting period to a person or business. Liabilities are settled by transferring economic benefits such as money, goods or services.
Accounting period means within one year.
Liabilities can be types of loans, creditors, lender and suppliers.
Liability is a very extensive topic in the accounting subject and there are different types of liability.
LuckScout Member edited answer August 31, 2023