You borrow money from a bank. That debt counts as a liability...you have to pay it back. Meanwhile, the bank makes similar loans all day long.
When you borrow $50 from your sister, she can probably keep the debt in her head. Even if you give her $12.50 as partial payment, it isn’t too taxing for her to recall, “that deadbeat still owes me $37.50.”
However, a bank has so many loans outstanding, each with a different terms and in a different state of repayment, it needs a central document to keep them straight.
That list is represented by the liability ledger. It's the main document outlining the loans the bank has outstanding.
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Finance: What is liability?3 Views
Finance allah shmoop What is a liability What is it
it's what you owe you bought four million gumballs on
credit for your party pack for the parade the money
is owed to gumballs are us in ninety days that's
a short term liability Alright next example you borrowed eighty
three million dollars to set up your new do dental
drive through service and that money is due in twelve
years at seven percent interest a year that's A long
term liability Why long term Because it comes due in
over a year and that's basically it liability comes in
two flavors short and long term and it's one of
the key elements of the balance sheet as it lives
in this space ride over here So yeah that's a
liability all this crap time now considering how many gumballs
you've consumed in the past month you really should get
yourself to a good drive through dentist or maybe sleep 00:00:56.998 --> [endTime] in mr
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