In accounting, a financial liability is something that is owed to another party. This is typically contrasted with an asset which is something of value that you own. The basic accounting equation relates assets, liability, and capital (or equity) thus: liablities + equity = assets.
Long-term assets are those assets usually in service over one year such as buildings, equipment, etc. These often receive favorable tax treatment over short-term assets.
Liabilities with a future benefit over one year, such as notes payable that mature greater than one year.
Luca Bartolomes Pacioli, Italian mathematician, (1445-1517), is credited with the first publication of the ‘Venetian method’ of keeping accounts, now known as ‘double-entry bookkeeping’. For this reason, some regard him as the founder of the field of accountancy. His publications include the Summa de arithmetica, geometria, proportioni et proportionalita an encylopaedic work on the state of the art in arithmetic, mathematics, and bookkeeping at the time.