Liabilities are the various obligations a company has that are monetarily bound and payable to a different party.
These are bound by law, cast in the heart of dying stars, and carry rules forged by iron that serve only the noblest purposes.
Salary! Paychecks! Sweet money! Like employee wages!
These can also include taxes, insurance, accounts payable/receivable, and the cost of simply doing business and keeping the lights on.
A liability could cost someone else down the line; for companies, they are constant and numerous.
When settling a liability, let’s return to my favorite example: PAY. Does a company pay you anything aside from money? (Like exposure for your brand?) Of course not!
Liabilities must be settled through cash or cash equivalents.