Liabilities

Definition

• A borrower's debts and legal obligations.

Synonyms
arrears, debts, obligations, financial liabilities, financial obligations

Related Terms and Acronyms

• Acid-Test Ratio — Definition,
  • A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
• Caveat — Definition,
  • To give warning, notice or caution; beware.
  • A charge or instrument placed on land title.
• Conditional Reserves — Definition,
  • Reserves that are considered liabilities.
• Credit Rating (CR) — Acronym, Very Important,
  • A judgement of a person's ability to repay debts. The rating is often based on a person's current and projected income and past debt payment history. Also called a credit score.
  ➥ A metric to measure the credit worthiness of a debtor.
• Credit Report (CR) — Acronym, Very Important,
  • A report on a loan applicant's willingness and ability to make payments in a timely manner in the past. This report is provided to the bank by an outside agency.
  ➥ A report that outlines the credit worthiness of an individual or entity.
• Debt — Definition,
  • Money one person or firm owes to another person or firm.
• Debt Consolidation — Definition,
  • The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
• Issuer — Definition,
  • A legal entity that develops, registers, and sells securities including stocks, bonds and derivatives.
• Leverage — Definition,
  • The use of a small amount of cash and a large loan to buy something.
• Long-term Liabilities — Definition,
  • Money owed over a period longer than 12 months, such as mortgages, bank loans, and other obligations.
• Netting — Definition,
  • The offsetting with a counter-party of financial obligations or payments one is owed with those one is entitled to receive, thus reducing the costs arising out of payment settlements. Netting is also used as a risk management tool to help counter-parties reduce their exposure to credit risk.
• Protected Cell Company (SPC) — Acronym,
  • A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
• Short-term Liabilities — Definition,
  • Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.
• Solvency — Definition,
  • To be able to meet one's financial liabilities in the short or long term.
• Sub Account — Definition,
  • A separate financial account used to keep track of a department's finances.
• Tax Liability — Definition,
  • The total amount of tax you owe.