# liabilities

/ˌɫaɪəˈbɪɫətiz/ (US) · /lˌaɪəbˈɪlɪtiz/ (UK)

Source: https://englishreference.com/word/liabilities
Updated: 2026-06-20

## Senses

### 1. financial debts

noun · CEFR B2 · Technical

the total amount of money that a person or company owes to others.

For teachers: the financial obligations of an entity, including loans, accounts payable, and accrued expenses. Usually plural in this sense.

- The company had to sell its office building to pay off its liabilities.
- The auditor noted that the firm's current liabilities exceeded its liquid assets, raising concerns about its short-term solvency.

Usage: Often used in the plural form when referring to a list of debts on a balance sheet.

### 2. legal responsibilities

noun · CEFR B2 · Formal

the state of being legally responsible for something, especially for paying for damage.

For teachers: the state of being legally responsible for an act or omission. Often used in insurance and legal contexts.

- The business carries insurance to cover any potential liabilities from accidents.
- The contract clearly defines the liabilities of each party in the event of a data breach or system failure.

Usage: Can be used as a countable noun referring to specific legal risks or as an uncountable noun for the general state of responsibility.

### 3. disadvantages or risks

noun · CEFR C1 · Informal

people or things that cause problems or are likely to cause trouble in the future.

For teachers: persons or things whose presence or behaviour is likely to cause embarrassment or disadvantage. Figurative extension of the financial sense.

- The noisy fans became liabilities for the restaurant after the neighbours complained.
- In a high-stakes political campaign, candidates with a history of controversial statements are often viewed as major liabilities by their own parties.

Teaching tip: In this informal sense, a person can be 'a liability'. It suggests they are a weakness to a team rather than a strength.

## Examples

- The company has many liabilities to pay.
- Before buying the house, they checked for any hidden liabilities like unpaid taxes.
- Investors scrutinized the balance sheet, noting that rising liabilities threatened to outpace the firm's growing revenue stream.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.