fundamentals
liability
A financial obligation or debt owed by a person or company to another party.
Example
"Her mortgage and car loan were her two largest liabilities."
💡 Memory Tip
LIA-bility — you're LIABLE for it. It's money you're legally responsible to pay.
Etymology
From Latin 'ligare' meaning 'to bind' — you are legally bound to pay.
Common Misspellings
liabiltyliabililtyliabiliyliabality