indebtedness - Hutchinson encyclopedia article about indebtedness Printer Friendly
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liability
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liability

In accounting, a financial obligation. Liabilities are placed alongside assets on a balance sheet to show the wealth of the individual or company concerned at a given date. Business organizations often distinguish between current liabilities such as overdrafts, trade credit, and provisions, and long-term liabilities such as debentures, mortgages, and unsecured loans.



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