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What are Liabilities? Explained with Examples

Liability: it’s a word I’m sure you’ve used many times before - possibly without knowing exactly what it means. But even though you may not know the exact definition, I’ll bet you have a basic understanding of what a liability is. If you say that a liability is “something you owe” or “something that takes money out of your pocket” you’d be on the right track. But there’s more to it than that, so let’s take a closer look at what exactly liabilities are so that you can know for sure what to include as liabilities on your balance sheet. ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ Timestamps: 00:00 What are Liabilities? Explained with Examples 00:15 Liabilities explained 00:34 Is a loan or mortgage a liability? 02:03 Is credit card debt a liability? 03:14 What are liabilities used for? 03:32 Personal liability definition 03:56 Business liability definition 04:09 Liability accounting definition ▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬ ⚖ DISCLAIMER Information provided in our videos does not constitute financial, taxation, legal, business or other professional advice. If you make a purchase through an affiliate link provided here we may receive a commssion. We do not accept any responsibility or liability for purchases made through third-party vendors, websites, or services. It is your reponsibility to review and understand the terms, conditions, and policies of third parties before making any purchases.