|
Sponsored Links
In the most general sense, a liability is anything that is a hindrance, or puts individuals at a disadvantage. In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future. Individual or group must adopt corporate charter and file it with the state. Liabilities in financial accounting need not be legally enforceable; but can be based on equitable obligations or constructive obligations. An equitable obligation is a duty based on ethical or moral considerations. A constructive obligation is an obligation that can be inferred from a set of facts in a particular situation as opposed to a contractually based obligation. The accounting equation relates assets, liabilities, and owner's equity
|
Liability Subcategories
Liability Articles
|
| 
