Debt that both arises through and is used in business operations.

Applicable to either businesses or individuals, this type of debt includes loans, accounts payable, mortgages, deferred revenue, and accrued expenses. It is recorded on the balance sheet and is settled through the transfer of economic benefits such as money, goods, or services. Capital liabilities are also important because they can be used to finance operations and expansions or purchase fixed assets.

A distinction is made between current liabilities, which are debts payable within one year, and long-term liabilities which are payable over a longer period.

In general a liability is money or services owed by one party to another. An example would be property taxes owed by a homeowner to the municipal government.