Liability

Any money that needs to be paid in the future.

Examples:
• a bank loan (needs to be paid back some day)
• an electricity bill
• taxes not yet paid

Can also include services owed, such as a promise to paint a customer's fence.

In accounting liabilities are recorded on a company's balance sheet and refer to owed amounts the company must pay back:
• Current Liabilities need to be settled within one year
• Long-term Liabilities due after more than one year