Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Liability shopping experience:
1. Compare - without doubt the biggest advantage that the Liability offers shoppers today is the ability to compare thousands of Liability at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Liability? Wrong! If the Liability is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Liability then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Liability? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Liability and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Liability wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Liability then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Liability site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Liability, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Liability, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
In the most general sense, a
liability is anything that is a hindrance, or puts individuals at a disadvantage.
Financial accounting
In
financial accounting, a
liability is defined as an
obligation of an entity arising from
past transactions or events, the settlement of which may result in the transfer or use of
assets, provision of services or other yielding of economic benefits in the future.
- They embody a duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services or other yielding of economic benefits, at a specified or determinable date, on occurrence of a specified event, or on demand;
- The duty or responsibility obligates the entity leaving it little or no discretion to avoid it; and,
- The transaction or event obligating the entity has already occurred.
Liabilities in financial accounting need not be legally enforceable; but can be based on equitable obligations or constructive obligations. An
equitable obligation is a duty based on ethical or moral considerations. A
constructive obligation is an obligation that can be inferred from a set of facts in a particular situation as opposed to a contractually based obligation.
The
accounting equation relates
assets,
liabilities, and
ownership equity:
Assets = Liabilities + Owner's Equity
The accounting equation is the mathematical structure of the
balance sheet.
The Australian Accounting Research Foundation defines liabilities as
future sacrifice of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions and other past events.Probably the most accepted accounting definition of
liability is the one used by the
International Accounting Standards Board (IASB). The following is a quotation from IFRS Framework:
Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the IASB.
Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.
Classification of liabilities
Liabilities are reported on a balance sheet and are usually divided into two categories:
- Current liabilities — these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.
- Long-term liabilities — these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term Bond (finance), notes payables, long-term leases, pension obligations, and long-term product warranty.— In these liabilities a company has to pay after a fixed or long period For ex:- Long term bank loans up to 1yr or more than one 1yr.
Liabilities of uncertain value or timing are called provisions - see
Provision (Accounting).
==In law==
- In law a legal liability is a situation in which a person is liable, such in situations of tort concerning property or reputation and is therefore responsible to pay compensation for any damage incurred; liability may be Civil law (common law) or Criminal law. See Strict liability. Under English law, with the passing of the Theft Act 1978, it is an offense to dishonestly evade a liability. Compensation for damages usually resolved the liability. Vicarious liability arises under the common law doctrine of agency (law) – respondeat superior – the responsibility of the superior for the acts of their subordinate.
- In commercial law, limited liability is a form of business ownership in which business owners are legally responsible for no more than the amount that they have contributed to a venture. If for example, a business goes bankrupt an owner with limited liability will not lose unrelated assets such as a personal residence (assuming they do not give personal guarantees). This is the standard model for larger businesses, in which a shareholder will only lose the amount invested (in the form of stock value decreasing). For an explanation see business entity.
- Manufacturer's liability is a legal concept in most countries that reflects the fact that producers have a responsibility not to sell a defective product. See product liability.
Bank account example
Money deposited with a bank becomes a liability of the bank, because the bank has an obligation to pay the depositor the money deposited; usually on demand. (The money deposited is an
asset for the depositor; but this asset will not be recorded by the bank because it is not the bank's asset. If the depositor maintains accounting records separate and apart from the bank account maintained by the bank, only then will the asset be recorded.)
A
debit increases an
asset; and a Debits and credits decreases an
asset. A
debit decreases a
liability; and Debits and credits increases a
liability.
When a bank receives a deposit it credits a liability account called "Deposits" and credits the depositor's bank account for the same amount (the bank's "Deposits" account is the sum of all of the amounts credited to all of its customer's individual bank accounts). A deposit received by a bank is credited because the bank's liability to its customer, the depositor, increases. When a bank informs its depositor that it has debited the depositor's bank account, it means that the depositor's bank account has been decreased by the amount debited.
See also
External links
- http://www.publicliability.net.au/what_is_liability.htm External liability
In the most general sense, a
liability is anything that is a hindrance, or puts individuals at a disadvantage.
Financial accounting
In financial accounting, a
liability is defined as an
obligation of an entity arising from
past transactions or events, the settlement of which may result in the transfer or use of
assets, provision of services or other yielding of economic benefits in the future.
- They embody a duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services or other yielding of economic benefits, at a specified or determinable date, on occurrence of a specified event, or on demand;
- The duty or responsibility obligates the entity leaving it little or no discretion to avoid it; and,
- The transaction or event obligating the entity has already occurred.
Liabilities in financial accounting need not be legally enforceable; but can be based on equitable obligations or constructive obligations. An
equitable obligation is a duty based on ethical or moral considerations. A
constructive obligation is an obligation that can be inferred from a set of facts in a particular situation as opposed to a contractually based obligation.
The accounting equation relates
assets,
liabilities, and ownership equity:
Assets = Liabilities + Owner's Equity
The accounting equation is the mathematical structure of the balance sheet.
The Australian Accounting Research Foundation defines liabilities as
future sacrifice of economic benefits that the entity is presently obliged to make to other entities as a result of past transactions and other past events.Probably the most accepted accounting definition of
liability is the one used by the
International Accounting Standards Board (IASB). The following is a quotation from IFRS Framework:
Regulations as to the recognition of liabilities are different all over the world, but are roughly similar to those of the IASB.
Examples of types of liabilities include: money owing on a loan, money owing on a mortgage, or an IOU.
Classification of liabilities
Liabilities are reported on a
balance sheet and are usually divided into two categories:
- Current liabilities — these liabilities are reasonably expected to be liquidated within a year. They usually include payables such as wages, accounts, taxes, and accounts payables, unearned revenue when adjusting entries, portions of long-term bonds to be paid this year, short-term obligations (e.g. from purchase of equipment), and others.
- Long-term liabilities — these liabilities are reasonably expected not to be liquidated within a year. They usually include issued long-term Bond (finance), notes payables, long-term leases, pension obligations, and long-term product warranty.— In these liabilities a company has to pay after a fixed or long period For ex:- Long term bank loans up to 1yr or more than one 1yr.
Liabilities of uncertain value or timing are called provisions - see Provision (Accounting).
==In law==
- In commercial law, limited liability is a form of business ownership in which business owners are legally responsible for no more than the amount that they have contributed to a venture. If for example, a business goes bankrupt an owner with limited liability will not lose unrelated assets such as a personal residence (assuming they do not give personal guarantees). This is the standard model for larger businesses, in which a shareholder will only lose the amount invested (in the form of stock value decreasing). For an explanation see business entity.
- Manufacturer's liability is a legal concept in most countries that reflects the fact that producers have a responsibility not to sell a defective product. See product liability.
Bank account example
Money deposited with a bank becomes a liability of the bank, because the bank has an obligation to pay the depositor the money deposited; usually on demand. (The money deposited is an
asset for the depositor; but this asset will not be recorded by the bank because it is not the bank's asset. If the depositor maintains accounting records separate and apart from the bank account maintained by the bank, only then will the asset be recorded.)
A
debit increases an
asset; and a
Debits and credits decreases an
asset. A debit decreases a
liability; and Debits and credits increases a
liability.
When a bank receives a deposit it credits a liability account called "Deposits" and credits the depositor's bank account for the same amount (the bank's "Deposits" account is the sum of all of the amounts credited to all of its customer's individual bank accounts). A deposit received by a bank is credited because the bank's liability to its customer, the depositor, increases. When a bank informs its depositor that it has debited the depositor's bank account, it means that the depositor's bank account has been decreased by the amount debited.
See also
External links
- http://www.publicliability.net.au/what_is_liability.htm External liability
