CBSE BoardEnglish MediumSTD 11 CommerceAccountAccounting Terms1 Mark
Question
Explain the meaning of the following term:
Liability.
✓
Answer
Liabilities mean amount owed (payable) by the business. Liability towards the owners (proprietor or partners) of the business is termed as internal liability. On the other hand, liability towards the outsiders, i.e., other than the owners proprietor or partners) is termed as external liability.
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