Verbindlichkeiten (EN)

Definition

Liabilities are all financial obligations of a company toward third parties that have arisen within or outside of business operations. They are shown on the liabilities side of the balance sheet and include both short-term and long-term debts. Liabilities must be settled at a specific time and reduce the company's equity.

Classification of Liabilities

flowchart TD     A[Liabilities] --> B[Short-term liabilities]     A --> C[Long-term liabilities]          B --> D[Liabilities from deliveries and services]     B --> E[Liabilities to credit institutions]     B --> F[Tax liabilities]     B --> G[Personnel liabilities]     B --> H[Tax liabilities]          C --> I[Bonds]     C --> J[Bank liabilities]     C --> K[Pension obligations]     C --> L[Rental obligations] 

In Context

• Typically used together with assets, equity, and total balance sheet
• Related to: Receivables, Equity, Balance Sheet
• Example use: Analysis of a company's liquidity and financial structure