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liability


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The items on the debit side of a balance-sheet. These include unpaid bills from suppliers, unpaid taxes, and secured and unsecured debts of various sorts. The net equity value of the firm is included as a liability to make the total equal to total assets. Contingent liabilities are those which may arise, for example if the firm is called upon to honour guarantees. See also current liabilities; eligible liabilities.

Subjects: Economics.


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