What Does Liabilities Mean
Before answering the question, “What Does Liabilities Mean”, you must consider the concept behind the term Liabilities in order to better understand the meaning of Liabilities. What is a Liability Basically, there are two Sources of Finance to the business, Liabilities and Owner Equity or Equity in case of Company. Liabilities are the External Sources of Finance For The Businessman or Company, while Equity are the Internal Sources of Finance For the Company or Owner of the business. So the resources provided to the business by outsiders like Creditors, Banking Institutions, Financial Institutions and other companies are liabilities for the business which the business has to pay in time to smooth running of business and avoid Bad Debts situations. Note: Resources are Assets Owned By The Business You may also be interested in Difference Between Liabilit