Anya recently bought a house and took out a $250,000 mortgage. She also used her credit card to buy furniture for her house, and she is on a payment plan to pay for these purchases. These are examples of

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These are examples of liabilities, which are amounts of money that you owe to others. The right-hand side of the balance sheet is for recording liabilities such as bank loans, mortgages, credit card debt, and other personal loans. They are usually listed in the order of how soon they must be paid back to the lender.

Anya Recently Bought a House and Took Out a $250,000