Liabilities

 What is a Liabilities?

• A liability is something which is owed to somebody else.
• 
  A liability is a present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Example of liabilities:

• Bank overdraft
• Trade payables
• Bank loan
• Salary payable
• 
  Interest payable