Liabilities are economic obligations of the organization to outsiders,or claims against its assets by outsiders.

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Liabilities represent the financial obligations of a company to outside parties, such as suppliers, lenders, or investors. These obligations can include debts, loans, accounts payable, and other future obligations that the company is expected to fulfill. Liabilities are important because they affect a company's financial health and its ability to meet its obligations and pay its debts.

Liabilities Are Economic Obligations of the Organization to Outsiders,or Claims