With cash accounting, the transaction wouldn't be recorded until cash changes hands. Another example of a liability is money owed to a bank or an employee.

A common form of cookie jar accounting is to "recognize" or state a liability when the company in fact has not incurred a liability. For example, company executives may say they plan to reorganize ...

Understanding Aggregate Limit of Liability The general aggregate limit is spelled out in the insurance contract and caps the number of covered losses for which an insurer will pay. The aggregate ...