Home Products Tour Support Contact Us Blog Resources Buy
 
Home > Resources > Glossary > Liabilities
Business valuation video: State-of-the-art valuation tools. Old-fashioned customer service.

Liabilities

Definition

Legal obligations of the business, which appear on its Balance Sheet.

What It Means

Liabilities are debt carried by the business and include such items as

  • Accounts payable
  • Loans
  • Deferred revenues
  • Accrued expenses

Those liabilities that must be paid within one year are referred to as current liabilities, the rest are called long-term liabilities. When valuing a small business for sale, you may need to recast its financials, including the liabilities.