accounting definition of liabilities

In accounting, liabilities are financial obligations or debts that a business owes to external parties, such as creditors, suppliers, or lenders. These can include loans, accounts payable, wages, and accrued expenses. Liabilities are classified as current (due within a year) or non-current (due after one year) and are listed on a company's balance sheet. Proper management of liabilities is essential for maintaining a company's financial health and ensuring timely repayment