Learn what a contra liability account is, how it functions in financial accounting, and explore examples of this essential component in balancing liabilities.

A liability is a financial obligation or debt owed. Liabilities are key elements on every company’s balance sheet, and therefore, important to stock and bond investors. Learn more. In finance and ...

What would happen if your business was sued? You damage a client's property, one of your employees is injured on the job, a customer slips and falls in your store—that's all it takes. And then what?

A sole proprietorship is a business entity where all liabilities and financial obligations pass to the single owner of the business. Those choosing a sole proprietorship are usually in low-liability ...

Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia. Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of ...