Known Liabilities: Definition & Types


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What are known liabilities?

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1. What is the definition of liabilities?

2. Which of the following statements is true regarding known liabilities by contract?

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About This Quiz & Worksheet

In this lesson, you will learn the definition of known liabilities. The accompanying quiz/worksheet combo will test the student's knowledge of the types of liabilities a business may encounter and what obligations they may incur.

Quiz & Worksheet Goals

In these assessments you'll be tested on:

  • The definition of known liability
  • What is meant by the term liability
  • How liabilities by contract differ from liabilities by agreement
  • The best explanation of liabilities by law

Skills Practiced

  • Making connections - use your understanding of the concept of known liability
  • Critical thinking - apply relevant concepts to examine information about known liabilities that a business may encounter
  • Defining key concepts - ensure that you can accurately define main phrases, such as liability, known liability, liability by law, liability by contract, and liability by agreement
  • Knowledge application - use your knowledge to answer questions about the types and obligations of known liabilities

To learn more about known liabilities, review the accompanying lesson entitled Known Liabilities: Definition and Types. This lesson covers the following topics:

  • An explanation by example of known liabilities
  • What is a liability by agreement
  • How a liability by contract differs from a liability by agreement
  • The two special types of liability associated with liabilities by law