Monetary liability definition

What is a Monetary Liability?

A monetary liability is a fixed obligation to pay. The amount of this obligation does not depend on the outcome of future events. The amount to be paid is typically stated in a contract, invoice, or employment agreement.

Examples of Monetary Liability

Examples of monetary liabilities are trade payables, notes payable, and wages payable. In every case, the amount of the obligation to be paid is clearly stated in, respectively, a supplier invoice, a loan agreement, and a job offer.

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