External Liabilities

Debts which are payable to outsider of business are called external liabilities. For example: Account payable, wages payable, 

The portion of a country's debt that was borrowed from foreign lenders including commercial banks, governments or international money institutions. These loans, together with interest, must usually be paid in the currency within which the loan was made. in order to earn the needed currency, the borrowing country might sell and export product to the lender's country.

External debt (or foreign debt) is that a part of the total debt in a country that is owed to creditors outside the country. The debtors the government the govt, firms or private households. The debt includes money owed to personal industrial banks, other governments, or international money institutions like the International fund (IMF) and United Nations agency. Note that the use of gross liability figures greatly distorts the magnitude relation for countries which contain major cash centers, e.g. uk, because of London's role as a significant cash centre. contrast net international investment position