Elements of the Balance sheet Liabilities Obligation Liability Includes legal Probable future sacrifice of moral. soclal economical benefit arising and imp died from a present obligation commitments of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or eventsElements of the Balance Sheet — Liabilities Liability Probable future sacrifice of economical benefit arising from a present obligation of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events. “Obligation” includes legal, moral, social, and implied commitments. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity