What is the legally bound obligation to pay debts called?

Finance Dec 19, 2020

Expert Solution

The legally bound obligation to pay debts is called a liability. A liability started as a legal definition, and refers to anything you are responsible for whether it is property, another person, or a legal issue. In the case of finance and accounting, a liability is a monetary obligation to another person or organization. In accounting, all liabilities are quantified with a dollar amount.

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