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The Nature of Liabilities Distinction Between Debt and Equity The acquisition of assets is financed from two sources: LiabilitiesQuestion LiabilitiesQuestion Evaluating Liquidity An important indicator of a company抯 ability to meet its current obligations. Two commonly used measures: LiabilitiesQuestion LiabilitiesQuestion Accounts Payable Notes Payable Notes Payable Notes Payable Interest Payable Interest expense is the compensation to the lender for giving up the use of money for a period of time. The liability is called interest payable. To the lender, interest is a revenue. To the bor