definition of liabilities accounting

In accounting, liabilities refer to the financial obligations or debts that a business owes to external parties, such as creditors, suppliers, or lenders. These can include loans, accounts payable, mortgages, or accrued expenses. Liabilities are classified as either current (due within a year) or non-current (due after one year) and are reported on a company's balance sheet. Proper management of liabilities is crucial for maintaining financial stability and ensuring long-term business success