liabilities: meaning, definition, pronunciation and examples
B2Formal (financial), Neutral (figurative)
Quick answer
What does “liabilities” mean?
All things that a person or company owes, especially debts.
Audio
Pronunciation
Definition
Meaning and Definition
All things that a person or company owes, especially debts.
1. Items recorded on a balance sheet representing financial obligations. 2. The disadvantages or responsibilities that come with a situation or role. 3. In law, the state of being legally responsible for something.
Dialectal Variation
British vs American Usage
Differences
No major lexical differences. Minor spelling conventions (e.g., 'balance sheet' used identically). The conceptual understanding and usage in business/finance is identical.
Connotations
Identical technical connotations in finance. In everyday figurative use, carries the same negative weight.
Frequency
Slightly higher frequency in American business media due to legal/regulatory context, but the difference is negligible.
Grammar
How to Use “liabilities” in a Sentence
[Entity] has liabilities of [Amount][Entity]'s liabilities exceed its assetsto be held liable for [Something]to take on/assume the liabilities of [Another Entity]Vocabulary
Collocations
Examples
Examples of “liabilities” in a Sentence
verb
British English
- The contract will liability the company for future damages. (Rare/legal)
- They sought to liability the manufacturer. (Rare)
American English
- The new law could liability employers in such cases. (Rare/legal)
- The clause was designed to liability the lessee. (Rare)
adverb
British English
- The director acted liability. (Not standard; 'liable' is adjective)
- The contract is liability phrased. (Not standard)
American English
- He was held liability for the accident. (Incorrect; use 'liable')
- The product was manufactured liability. (Not standard)
adjective
British English
- The liability position of the firm worsened.
- He is in a liability agreement with the bank. (Uncommon, 'liable' is standard)
American English
- The liability insurance coverage was insufficient.
- We reviewed the liability provisions of the treaty.
Usage
Meaning in Context
Business
On the balance sheet, the firm's liabilities were listed as £2 million.
Academic
The study examined the correlation between corporate social responsibility and contingent liabilities.
Everyday
Owning that old car is becoming a real liability with all the repair bills.
Technical
The pension fund recognised an actuarial liability of $10bn on its statement of financial position.
Vocabulary
Synonyms of “liabilities”
Strong
Neutral
Weak
Vocabulary
Antonyms of “liabilities”
Watch out
Common Mistakes When Using “liabilities”
- Using it as an uncountable noun (e.g., 'too much liability' - incorrect; 'too many liabilities' or 'too much liability' is possible only in the singular legal sense). Confusing 'liabilities' (debts owed) with 'assets' (things owned). Using singular 'liability' to mean 'debt' in a financial list (prefer plural).
FAQ
Frequently Asked Questions
In financial/accounting contexts referring to debts, yes, it is almost always plural ('the company's liabilities'). The singular 'liability' is used in law ('limited liability') and figuratively ('he is a liability').
All debts are liabilities, but not all liabilities are debts. 'Liabilities' is a broader accounting term including debts, but also obligations like future tax payments, warranties, or services owed.
Almost never. In finance, they represent obligations (negative). Figuratively, they are disadvantages or burdens. It is inherently a 'negative' term on a balance sheet.
Use it figuratively to describe things that cause more trouble or cost than benefit. E.g., 'That second car is a real liability with its parking costs.' It sounds slightly formal; in casual speech, 'burden', 'drawback', or 'problem' is more common.
All things that a person or company owes, especially debts.
Liabilities is usually formal (financial), neutral (figurative) in register.
Liabilities: in British English it is pronounced /ˌlaɪ.əˈbɪl.ə.tiz/, and in American English it is pronounced /ˌlaɪ.əˈbɪl.ə.t̬iz/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “He is more of a liability than an asset.”
- “The project's liabilities outweighed its benefits.”
Learning
Memory Aids
Mnemonic
Think of 'LIAbilities' - the things you are 'liable' or legally responsible to pay. It's the 'lie' you owe (a debt).
Conceptual Metaphor
BURDEN / WEIGHT (e.g., 'weighed down by liabilities'), OPPOSITE OF ASSET (e.g., 'on the wrong side of the balance sheet').
Practice
Quiz
In a figurative sense, calling someone 'a liability' means they are: