Liabilities are probable future sacrifices of economic benefits arisen from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events.

Liabilities are the obligations，or debts，that an entity must pay in money or services at some time in the future because of past transactions or events.For example，a firm may borrow money and sign a promissory note agreeing to pay it back six months in the future.The firm will report this obligation as a liability called notes payable.Similarly，the firm may owe amounts to various suppliers for goods or services already provided(accounts payable)，or it may owe wages to employees for work already performed(wages payable).Notes payable，accounts payable，and wages payable are obligations that will be settled in the relatively near time.Other liabilities may take long periods to settle.For example，a business may borrow funds to finance the construction of a building and agree to pay them back over the next 15 years，with the building serving as collateral for the loan.This transaction results in a liability called mortgage payable.

All liabilities eventually mature that is，they come due，but their maturity dates vary.Some liabilities are so short in term that they are paid before the financial statements reaching the users'desk.Long-term liabilities，in contrast，may not mature for many years.The maturity dates of key liabilities may be a critical factor in the solvency of a business.