Liabilities are creditors' claims for funds, usually because they have provided funds, or goods and services, to the firm.

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Liabilities represent the debts or obligations that a company owes to its creditors, suppliers, or other parties. These claims can arise from loans, accounts payable, taxes owed, or other expenses that have not yet been paid. As such, liabilities represent a source of funding for the company and must be managed effectively to ensure the financial health and solvency of the business.

Liabilities Are Creditors' Claims for Funds, Usually Because They Have