financial liability

Money you owe

A financial liability is a debt or obligation one party owes to another—money that must eventually be paid.

Companies track liabilities on balance sheets: loans, accounts payable, mortgages, bonds issued.

The company's financial liabilities exceeded its assets.

In personal finance, liabilities include credit card debt, car loans, and outstanding bills.

The term emphasizes the legal obligation to pay rather than just owing money informally.

Opposites
balance sheet position

financial liabilityasset

Item of value owned

financial asset · equity · net worth · shareholder equity · capital

financial impact

financial liabilityfinancial gain

Income exceeding expenses

profit · income · revenue · earnings · return

economic burden vs. benefit

financial liabilityfinancial asset

Owned item of value

income stream · revenue source · profit · gain · windfall

Family

finance, liability

Familiarity
Top 200,000
Profile
Used worldwide · Timeless · Abstract · Negative · Rated G