GLOSSARY of Accounting Terms -L

RETURN TO GLOSSARY INDEX

Liability

A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits.

Liquidity

The availability of cash in the near future after taking account of financial commitments over this period.

Losses

Decreases in economic benefits and as such they are no different in nature from other expenses.

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