LeoGlossary: Liability

8 mo (edited)
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How to get a Hive Account

A liability is something an individual or a company owes. It is a fundamental part of the balance sheet and is found on the right hand side.

Basically a liability is a transference of future economic benefits. This reduces the value of a company since it is something owed.

The ratio of liabilities in relation to assets is something to watch.


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