Liability
A present obligation to transfer economic resources arising from past events. Liabilities include more than bank debt and need not be owed only to unrelated outsiders; recognition and classification depend on the accounting framework.
Liability in round numbers
Hypothetical balance sheet at 31 December 2025, in US$ millions: total liabilities of 18.5 comprise current liabilities of 7.8 and noncurrent liabilities of 10.7. These are classified balances at one date, not annual expenses or verified maturity evidence for an actual company.
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| Classification | Balance |
|---|---|
| Current liabilities | 7.8 |
| Noncurrent liabilities | 10.7 |
| Total liabilities | 7.8 + 10.7 = 18.5 |
Terms Related to Liability
Balance sheet · Asset · Owners’ equity · Notes payable · All of the glossary