Mammoth Memory

liabilities – the money a company owes, whether it's a bank loan, mortgage or unpaid bills

(Pronounced lai-uh-bil-uh-tees)

(Note: the difference between the terms liability and liabilities)

To remember what liabilities means use the following mnemonic:

He lied about his abilities (liabilities) to run the business, there are an awful lot of unpaid bills

He lied about his abilities (liabilities) to run the business, but the company still needs to pay it's bills


An alternative way to remember what liabilities is remember:

LiaBILities has the sound BILL in it and you need the ABILITY to pay it

Note: After a delivery of baked beans from a supplier, the supermarket has to pay the supplier for the goods. The supplier will send an invoice/bill (a piece of paper with the total amount the supermarket owes). This invoice/bill is the supermarket’s amount of liability.

If the supermarket has some repairs carried out for some new lights the repair company will send an invoice/bill. This invoice/bill is also the supermarket’s liability.



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