Liabilities Our textbook tells us that liabilities are obligations of the entity or as defined by the FASB, "probable future sacrifices of economic benefits arising from present obligations of a parti

Liabilities

Our textbook tells us that liabilities are obligations of the entity or as defined by the FASB, "probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events".

Explain how liabilities are necessary and even a good thing for a business. (Hint: why use your money when you can use someone else's money.) 

Your responses should be in essay format. This means you need to use paragraphs. Do NOT use bullet points or numbered lists. Do NOT use bold. There should be no words in bold in your response.

Use only quality academic peer-reviewed sources. Do NOT use websites, especially anything with "pedia" in the name.