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. 

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.