Definition : Liability

Asset having a negative economic value for a syndicate of co-owners. Liabilities include financial obligations to a third party such as accounts payable and other debts.

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CASH BASIS OF ACCOUNTING A cash basis of accounting consist of recording the transactions of the syndicate when the receipt or disbursement related to the transaction occurs. It is a faithful reproduction of the bank statement, broken down into various asset, liabilities, income or expenses accounts. Moreover, instead of talking about income and expenses, one should speak of receipts and disbursements. This basis of accounting has many limitations.
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