Definitions and Examples of debt, liability
Learn when and how to use these words with these examples!
An amount of money owed by one person, organization, or country to another.
Example
He had to take out a loan to pay off his debt.
The state of being responsible for something, especially by law.
Example
The company faced a lawsuit due to their liability in the accident.
Key Differences: debt vs liability
- 1Debt refers to the amount of money that one owes to another party.
- 2Liability refers to the legal responsibility for something, such as an accident or damage caused by a product.
Effective Usage of debt, liability
- 1Financial Planning: Use estate to describe assets and debt or liability to describe liabilities.
- 2Legal Matters: Use liability to describe legal responsibilities in contracts or agreements.
- 3Business Management: Use debt to describe financial obligations and liabilities in financial statements.
Remember this!
The antonyms have distinct meanings: Debt refers to the amount of money owed, while liability refers to legal responsibility. Use these words in financial planning, legal matters, and business management to describe assets and liabilities accurately.