Meaning & use
liabilities
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“liabilities” is a form of “liability”. See that entry for the full set of meanings.
Meanings
nounpluralfinance
Debts or amounts of money that a person or company owes.
Grammar: Always plural in this financial sense; the singular 'liability' refers to one debt or the state of being responsible.
Patterns
- liabilities of a company
- total liabilities
- current liabilities
The company's liabilities exceeded its assets, so it went bankrupt.
She listed her liabilities, including credit card debt and a car loan.
The balance sheet shows assets on one side and liabilities on the other.
nounpluralfigurative
People or things that cause problems or make a situation more difficult.
Grammar: Used figuratively to talk about burdens or disadvantages; often followed by 'to'.
Patterns
- liabilities to someone/something
- become liabilities
The old computer system became one of the company's biggest liabilities.
His lack of experience was one of his main liabilities as a candidate.
Word forms
| singular | liability |
|---|
Common combinations
- assets and liabilities
- The accountant balanced the assets and liabilities.
- current liabilities
- Current liabilities must be paid within a year.
- total liabilities
- The total liabilities were over a million dollars.
- meet liabilities
- The firm struggled to meet its liabilities.
Synonyms and how they differ
- debts
- More general and everyday; 'liabilities' is the technical term in accounting.
- obligations
- Can include legal or moral duties, not just money owed.
- burdens
- Focuses on the weight or difficulty of something, not just financial debt.
Opposites
Word family
Commonly confused: liabilities or libel?
liabilities vs libel
Libel is a written false statement that damages reputation; liability is legal or financial responsibility.
Practice
In accounting, what is the opposite of 'liabilities'?
Choose one answer.
Assets are what a company owns, while liabilities are what it owes. Debts and expenses are related to liabilities, not opposites.
Make it your own
Write a sentence using “liabilities”, then check it and compare it with the examples above.