A liability is a financial obligation or debt owed. Liabilities are key elements on every company’s balance sheet, and therefore, important to stock and bond investors. Learn more. In finance and ...

Learn what a contra liability account is, how it functions in financial accounting, and explore examples of this essential component in balancing liabilities.

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Michael Logan is an experienced writer, producer, and editorial leader. As a journalist, he ...

Liability constitutes an important, and oftentimes ruinous, aspect of business. Small businesses in particular may face complete collapse in the face of a liability lawsuit. Various types of liability ...