Zoho Bookings & SalesIQ Alignment

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Liability

Meaning: 

A liability is any amount of money that a person or company owes to others. Liabilities are future financial obligations that need to be paid back. Examples include EMIs (Equated Monthly Installments), credit card dues, salaries payable, taxes payable, and business loans.

Types of Liability :

Short-term (Current) Liabilities:
These are amounts that need to be paid within one year.

Long-term Liabilities:
These are amounts that are due after one year.

Importance in Finance:

Liabilities help measure how financially healthy a person or business is.
Having too many liabilities can indicate a higher risk of financial trouble.

Role in Goods and Business:
Companies often use liabilities, such as bank loans and supplier credit, to buy to buy inventory, run operations, and produce goods.

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