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<\/p>\n
Success in finance requires not only recognizing what liabilities are but also understanding their strategic implications and management techniques. Liabilities are best described as debts that don\u2019t directly generate revenue, though they share a close relationship. The money borrowed and the interest payable on the loan are liabilities. If the business spends that money to acquire equipment, for example, the purchases are assets, even though QuickBooks<\/a> you used the loan to purchase the assets. Assets have a market value that can increase and decrease but that value does not impact the loan amount.<\/p>\n