What are liabilities in the context of accounting?

Liabilities in accounting refer to the obligations or debts that a company owes to outside parties, which can include loans, accounts payable, mortgages, and other forms of borrowings. This concept is fundamental in the accounting equation, where assets are equal to liabilities plus equity. Liabilities represent a claim against the company’s assets, signifying that these obligations must be settled in the future, typically through the transfer of economic benefits like cash or the provision of services. This definition highlights the nature of liabilities as future sacrifices of economic resources, emphasizing their importance in assessing a company's financial health and leverage.

The other options describe different accounting concepts. Resources owned by a company relate to assets, which reflect what the company holds as valuable resources. Expenses incurred during a financial period are costs associated with operations but do not directly represent obligations to external parties. Lastly, shares owned by stockholders pertain to equity, representing ownership interest in the company rather than an obligation. This clarification of each concept helps in understanding the distinct roles they play within the broader landscape of accounting.