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Liabilities In Accounting: What Are Liabilities?
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Have you ever wondered the reasons behind companies keeping records of what a liability is? Liability is a situation where the organization is liable to pay in the future. Liability can be in terms of a bank loan, outstanding invoices, salaries payable and tax. It is important to understand what a liability means because liabilities indicate the total debt the organization owes others. There may be some important liabilities which could be current or long term.



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