Liabilities

Liabilities stand for the amount of money the company owes. In other words all of the claims against a company are its liabilities; see the list below

• the capital subscribed by shareholders
• shareholders funds which have been put into reserves
• loan capital outstanding and short term items such as trade creditors
• bank loans
• declared dividends
• tax payments due and so on.

For accountants liabilities are something abstract which appear in a balance sheet and their total has to be equal to the companys assets.

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2009-02-17 00:00:00 © Moneyextra.com