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What is the difference between a liability and an expense?
What is the difference between a liability and an expense?

Differences between a liability and an expense

Monisha Begum avatar
Written by Monisha Begum
Updated over 4 years ago

An expense can be a one-off payment (e.g. buying a TV) or an ongoing expense, like paying for your groceries or utility bill.

On the other hand, a liability (or debt) is an obligation; a TV purchase becomes a liability if you buy it on your credit card. Until you’ve completely paid off that debt, you have a duty to keep repaying the money you owe.

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