BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Business liabilities are, by definition, the amounts owed by a business at any one time. They’re often expressed as “payables” for accounting purposes. Unless you’re running a complete cash business (paying and collecting only cash), your business probably has liabilities.

Detailed explanation-2: -An amount owed by a business is called a LIABILITY.

Detailed explanation-3: -Liabilities are a company’s financial obligations, like the money a business owes its suppliers, wages payable and loans owing, which can be found on a business’s balance sheet.

Detailed explanation-4: -A liability is typically an amount owed by a company to a supplier, bank, lender or other provider of goods, services or loans. Liabilities can be listed under accounts payable, and are credited in the double-entry bookkeeping method of managing accounts.

Detailed explanation-5: -In its simplest form, your balance sheet can be divided into two categories: assets and liabilities. Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out!