Liabilities refer to the debts or obligations of a company that are owed to its creditors. Liabilities can be classified as current liabilities, which are obligations that are due within one year, or long-term liabilities, which are obligations that are due in more than one year. Examples of liabilities include loans, accounts payable, and salaries payable. Liabilities are recorded in a company's balance sheet and are an important aspect of a company's financial management as they represent the amount of money that the company owes to others.

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Managing liabilities is an important aspect of financial management as it helps a company to ensure that it has sufficient resources to meet its financial obligations and maintain its solvency. A company can manage its liabilities by keeping track of its debt levels, negotiating favorable loan terms, and developing a repayment schedule. An effective liability management strategy can help a company to minimize its interest costs, improve its cash flow, and increase its overall financial stability.

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