In the most general sense, a liability's anything that's a hindrance or puts an individual at a disadvantage. Although the term has very particular definition in the realm of finance, it's also used in non-finance contexts. The word liability may also refer to individual or an attribute or a component that puts a team or group at a disadvantage. Accounting liability In financial accounting, a liability's defined as an obligation of an entity arising from past transactions or events, the settle… (More on Liability)