Elements of the Balance sheet Liabilities An obligation Liability to provide Probable future sacrifice services is a liability 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 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. An obligation to provide services is a liability. Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity