liability

the state of being legally obliged and responsible an obligation to pay money to another party the quality of being something that holds you back

In the most general sense, a liability is anything that is a hindrance, or puts one at a disadvantage.

In accounting - In accounting, a financial liability is something that is owed to another party. This is typically contrasted with an asset which is something of value that you own. It is said, "assets put cash in your pocket, liabilities take cash out of your pocket." The basic accounting equation relates assets, liability, and capital (or equity) thus: liabilities + equity = assetswhere assets are what you own, liabilities are what you owe to others, and equity is what you have contributed to the venture.In technical terms, liabilities are: ''The future sacrifice of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions and other past events. ''(Statements of Accounting Concepts, AARF, 1997). Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the International Accounting Standards Board(IASB)iasb.org - link title. Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.

Clasification of liabilities - Liabilities are reported on a balance sheet and are usually divided into 2 categories:

Current liabilities - these liabilities are reasonably expected to be liquidated within a year. They usually include payables (wages, accounts, taxes, etc, payables), unearned revenue (see adjusting entries), portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.

Long-term liabilities - these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term bonds, notes payables, long-term leases, pension obligations, long-term product warranties, etc.

In law -

In law a legal liability is a term used to describe situations in which a person is liable, for, say, damage to property or reputation and is therefore responsibility responsible to pay compensation for any damage incurred; liability may be civil lawcivil or criminal.

In commercial law, limited liability is a form of business ownership in which business owners are legally responsible for no more than the amount that they have contributed to a venture. If for example, a business goes bankrupt an owner with limited liability will not lose unrelated assets such as a personal residence (assuming they do not give personal guarantees). This is the standard model for larger businesses, in which a shareholder will only lose the amount invested (in the form of stock value decreasing). For an explanation see business entity.

'''Manufacturer's liability''' is a legal concept in most countries that reflects the fact that producers have a responsibility not to sell a defective product

An example (from both accounting and law) - Money that you have accumulated is an asset to you. It is something of value that you own. If you take your money to a bank and deposit it there, it becomes a liability to the bank (the bank owes you the money). The money is both an asset to you and a liability to the bank.

See also -

List of accounting topics

List of business law topics

Liability insurance

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San Diego Real Estate
Online San Diego real estate guide featuring San Diego homes for sale, lofts, downtown San Diego condos, investment properties in San Diego California and La Jolla real estate.
http://www.sandiego-house.com/

www.myusabusiness.com
Resources for companies entering the USA Market. USA Market Entry.
http://www.myusabusiness.com/

E&O Insurance For Realtors
REO Advisors is a nationwide provider of Errors and Omissions Insurance for Real Estate Professionals. We cover Realtors, Appraisers, Inspectors and Mortgage Brokers with outstanding carriers and expert advice.
http://www.reoadvisors.com/

Farrell Backlund Insurance Agency
FBInsure.com provides online insurance quotes for residents of Massachusetts and Rhode Island. A service of the Farrell Backlund Insurance Agency in Taunton, Massachusetts. This site is a great resource for Massachusetts residents who are looking for competitive home, life, or auto insurance
http://www.fbinsure.com/

Perform Wall Panel System
A Perform Wall® Panel is comprised of cement, polystyrene, water, and other additives. The Panel's geometry produces a grid pattern that allows the panels to be placed vertically, horizontally or in combination. When the panels are filled with concrete and rebar, the Perform Wall® Panel System produces a monolithic reinforced concrete wall. Modulation of concrete formulas and the amount of reinforcement allows the load bearing capacity to be adapted for almost any requirement. Moreover, its flexibility of design and ease of construction provide significant marketing opportunities for design-build contractors, architects and developers. A Perform Wall® Panel serves as its own fire, sound and thermal barrier. It is virtually impervious to natural assaults including earthquake, fire, wind, water, heat and cold. The Perform Wall® Panel System represents peace of mind anywhere in the world.
http://www.performwall.com/

Healthsurf
Selected healthcare links
http://www.healthsurf.com/

International - Professional Liability Underwriting Society (PLUS)
Provides professional liability underwriters information regarding coverages, claims and policy trends to provide clients accurate and appropriate protection.
http://www.plusweb.org/

Legal Information Institute
Primary legal materials and links to a wide array of U.S. and international legal reference websites. From Cornell Law School.
http://www.law.cornell.edu/

BitLaw
An introduction to, and analysis of, intellectual property legal issues which govern the Internet and the development of high technology products.
http://www.bitlaw.com/

Tobacco Control Resource Center
Information on tobacco products and manufacturer liability from Northeastern University School of Law in Boston
http://www.tobacco.neu.edu/