{"id":999978841,"date":"2025-10-06T18:05:08","date_gmt":"2025-10-06T11:05:08","guid":{"rendered":"https:\/\/bizzi.vn\/?p=999978841"},"modified":"2025-12-22T09:29:43","modified_gmt":"2025-12-22T02:29:43","slug":"what-is-no-answer","status":"publish","type":"post","link":"https:\/\/bizzi.vn\/en\/what-is-no-answer\/","title":{"rendered":"What are liabilities? Definition, classification, and effective debt management automation strategies."},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Liabilities are considered a core factor that determines the financial health and sustainability of a business. Understanding the nature of liabilities not only helps businesses control risks, but also utilize it as a strategic financial tool for expansion and development.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Join Bizzi to learn about the concept of payables and payables management strategies in the article below!<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Index<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Dinh_nghia_No_phai_tra_la_gi\" >What is the definition of Liabilities?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Dac_diem_cua_no_phai_tra_la_gi\" >What are the characteristics of liabilities?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Vi_tri_va_Vai_tro_tren_Bang_can_doi_ke_toan_cua_no_phai_tra_la_gi\" >What is the Position and Role on the Balance Sheet of Liabilities?<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Vai_tro_cua_No_phai_tra_tren_Bang_can_doi_ke_toan\" >The Role of Liabilities on the Balance Sheet<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Dieu_kien_de_ghi_nhan_mot_khoan_No_phai_tra_la_gi\" >What are the conditions for recognizing a Liability?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Nguyen_tac_ghi_nhan_va_do_luong_no_phai_tra_theo_chuan_muc_ke_toan_VAS_IFRS\" >Principles for recognizing and measuring liabilities according to accounting standards (VAS, IFRS)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Phan_loai_chi_tiet_no_phai_tra_va_cac_khoan_muc_tac_dong_truc_tiep_den_dong_tien\" >Detailed classification of liabilities and items that directly impact cash flow.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#No_phai_tra_ngan_han_Current_Liabilities\" >Current Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#No_phai_tra_dai_han_Non-current_Liabilities\" >Non-current Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#No_tiem_tang_Contingent_Liabilities_%E2%80%93_Diem_khac_biet\" >Contingent Liabilities \u2013 The Difference<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Cong_thuc_tinh_va_cac_chi_so_phan_tich_No_phai_tra_la_gi\" >What is the formula and analysis indexes of Liabilities?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Cong_thuc_tinh_No_phai_tra\" >Formula for calculating Liabilities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Chi_so_danh_gia_suc_khoe_tai_chinh\" >Financial health index<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Vai_tro_Rui_ro_va_Cac_yeu_to_anh_huong_den_No_phai_tra\" >Role, Risks and Factors Affecting Liabilities<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Vai_tro_Rui_ro_cua_No_phai_tra_la_gi\" >What is the Role and Risks of Liabilities?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Cac_yeu_to_tac_dong_chinh_den_no_phai_tra_la_gi\" >What are the main factors affecting liabilities?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Chien_luoc_Quan_ly_No_phai_tra_hieu_qua_voi_Giai_phap_tu_Bizzivn\" >Effective Debt Management Strategy with Solutions from Bizzi.vn<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Quan_ly_no_theo_phuong_phap_truyen_thong\" >Traditional debt management<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Ung_dung_Cong_nghe_vao_Quan_tri_No_phai_tra_%E2%80%93_Loi_the_canh_tranh\" >Applying Technology to Accounts Payable Management \u2013 Competitive Advantage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Suc_manh_cua_su_tich_hop_%E2%80%93_Bizzivn_va_he_thong_ERP\" >The Power of Integration \u2013 Bizzi.vn and ERP System<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Cau_hoi_thuong_gap_ve_No_phai_tra_la_gi\" >FAQ What is a Liability?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#_No_phai_tra_co_phai_la_chi_phi_khong\" >\u00a0Are liabilities an expense?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Ty_le_no_bao_nhieu_la_an_toan\" >What debt ratio is safe?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Lam_the_nao_de_xac_dinh_no_phai_tra_cua_doanh_nghiep\" >How to determine the liabilities of a business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Lam_the_nao_de_xac_dinh_no_phai_tra_cua_doanh_nghiep-2\" >How to determine the liabilities of a business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Khi_nao_can_trich_lap_du_phong_phai_tra\" >When is it necessary to set up a provision for payables?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/bizzi.vn\/en\/what-is-no-answer\/#Ket_luan\" >Conclude<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Dinh_nghia_No_phai_tra_la_gi\"><\/span><b>What is the definition of Liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">In accounting, <\/span><a href=\"https:\/\/bizzi.vn\/no-phai-tra-la-gi\/\"><b>liabilities<\/b><\/a><span style=\"font-weight: 400;\"> (Liabilities) is a core concept, reflecting <\/span><b>financial obligations that a business must pay to a third party in the future<\/b><span style=\"font-weight: 400;\">. According to <\/span><b>Vietnamese Accounting Standards \u2013 VAS 01<\/b><span style=\"font-weight: 400;\">, liabilities are defined as:<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">\u201cLiabilities are present obligations of an enterprise arising from past transactions and events that the enterprise must settle by using its resources.\u201d<\/span><\/i><\/p>\n<p>Liabilities are current obligations of a business arising from past events, the settlement of which would result in a depletion of economic resources. This is a core element reflecting financial leverage and liquidity risk on the balance sheet.<\/p>\n<p>In other words, liabilities are the financial obligations that a business is responsible for repaying to other organizations or individuals, through forms such as cash, goods, services or other economic benefits in the future.<\/p>\n<figure id=\"attachment_999978842\" aria-describedby=\"caption-attachment-999978842\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-999978842 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1.png\" alt=\"what-is-no-question\" width=\"1200\" height=\"675\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1.png 1200w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1-300x169.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1-1024x576.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1-768x432.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-1-18x10.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978842\" class=\"wp-caption-text\">Liabilities are the financial obligations that a business is responsible for repaying to other organizations or individuals.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Dac_diem_cua_no_phai_tra_la_gi\"><\/span><b>What are the characteristics of liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Three characteristic attributes that help clearly identify the nature of liabilities include:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Present Obligation: Arising from transactions or commitments that have already occurred.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Past Transaction\/Event: There is clear evidence proving the obligation was formed in the past.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Outflow of Economic Benefits: The business will have to use assets, cash or services to pay.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Liabilities are not only monetary \u201cpayables\u201d, but also legal and financial commitments that represent the enterprise\u2019s responsibility to related parties.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Vi_tri_va_Vai_tro_tren_Bang_can_doi_ke_toan_cua_no_phai_tra_la_gi\"><\/span><b>What is the Position and Role on the Balance Sheet of Liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In the accounting system, <\/span><b>Balance sheet<\/b><span style=\"font-weight: 400;\"> is built on the basic equation:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Assets = Equity + Liabilities<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Assets<\/strong>:<span style=\"font-weight: 400;\"> What the business owns or controls (cash, inventory, fixed assets\u2026).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Liabilities:<\/strong><span style=\"font-weight: 400;\"> Financial obligations that a business must pay in the future.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Owner&#039;s Equity<\/strong>:<span style=\"font-weight: 400;\"> The remainder belongs to the owner after deducting liabilities, including contributed capital and retained earnings.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><strong>Presentation location<\/strong>: <span style=\"font-weight: 400;\">Liabilities are presented in <\/span>capital side (right side)<span style=\"font-weight: 400;\"> of the Balance Sheet.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Usually divided into 2 groups:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Short-term debt<span style=\"font-weight: 400;\">: located at the top (because there is an early payment deadline).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Long-term debt<span style=\"font-weight: 400;\">: presented below short-term debt.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure id=\"attachment_999978844\" aria-describedby=\"caption-attachment-999978844\" style=\"width: 380px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978844 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-3.gif\" alt=\"what-is-no-question\" width=\"380\" height=\"206\" title=\"\"><figcaption id=\"caption-attachment-999978844\" class=\"wp-caption-text\">Liabilities are presented on the equity side (right side) of the Balance Sheet.<\/figcaption><\/figure>\n<p><b>Visual example (simplified form):<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Suppose company A has total assets of <\/span><b>50 billion VND<\/b><span style=\"font-weight: 400;\">, in there <\/span><b>30 billion VND equity<\/b><span style=\"font-weight: 400;\"> and <\/span><b>20 billion dong in debt payable<\/b><span style=\"font-weight: 400;\">. Then, the accounting formula is expressed as follows:<\/span><\/p>\n<p><b>Assets (50 billion) = Equity (30 billion) + Liabilities (20 billion)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This shows that <\/span><b>Liabilities are a source of asset formation.<\/b><span style=\"font-weight: 400;\">, helping businesses maintain operations, expand scale and optimize financial leverage.<\/span><\/p>\n<p><b>Balance sheet (excerpt)<\/b><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>ASSET<\/b><\/td>\n<td><b>CAPITAL SOURCES<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Current assets<\/b><\/td>\n<td><b>Liabilities<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u2013 Cash and cash equivalents<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2013 Short-term debt (payable to suppliers, short-term loans, taxes payable)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u2013 Inventory<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2013 Long-term debt (long-term loans, issued bonds, financial leasing debt)<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>Long-term assets<\/b><\/td>\n<td><b>Equity<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Fixed assets<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2013 Owner&#039;s equity<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u2013 Investment real estate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u2013 Undistributed profit after tax<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h4><span class=\"ez-toc-section\" id=\"Vai_tro_cua_No_phai_tra_tren_Bang_can_doi_ke_toan\"><\/span><strong>The Role of Liabilities on the Balance Sheet<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Core components in financial structure: <\/b><span style=\"font-weight: 400;\">Liabilities reflect <\/span><b>financial obligations<\/b><span style=\"font-weight: 400;\"> of a business with third parties (suppliers, banks, tax authorities\u2026). This is one of the three main elements on the Balance Sheet along with Assets and Owner&#039;s Equity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Funding sources for activities:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> Liabilities are an important source of capital to finance business operations, especially when equity is not sufficient. For example: borrowing from a bank to expand a factory or buying goods on credit from a supplier.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Basis for assessing solvency: <\/b><span style=\"font-weight: 400;\">From indicators such as <\/span><b>Current Ratio<\/b><span style=\"font-weight: 400;\"> good <\/span><b>Debt to Equity Ratio<\/b><span style=\"font-weight: 400;\">, investors and creditors can assess the financial safety of the business.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Direct impact on financial risk and strategy: <\/b><span style=\"font-weight: 400;\">High debt helps businesses have more financial leverage, but if not managed well, it will increase debt repayment pressure and the risk of insolvency.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In short, liabilities are more than just a number on the balance sheet. <a href=\"https:\/\/bizzi.vn\/bao-cao-tai-chinh-la-gi\/\">financial report<\/a>, but also a mirror reflecting the capital usage strategy and financial health of the enterprise.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dieu_kien_de_ghi_nhan_mot_khoan_No_phai_tra_la_gi\"><\/span><b>What are the conditions for recognizing a Liability?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">According to VAS 01 \u2013 General Standard, an item is only recorded as a liability on the Balance Sheet when it simultaneously satisfies all three of the following conditions:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Present Obligation: <\/b><span style=\"font-weight: 400;\">The business has a legal or constructive obligation arising from a past transaction or event (e.g., unpaid purchases, bank loans).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Settlement by Resources: <\/b><span style=\"font-weight: 400;\">The business must certainly use economic resources (usually money, assets, or services) to pay this obligation in the future.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reliable Measurement: <\/b><span style=\"font-weight: 400;\">The value of the debt can be reliably determined in monetary terms, with sufficient basis to be reflected in the financial statements.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If all three conditions are not met, the obligation may be considered a contingent liability and only disclosed in the report, not recorded directly in the Balance Sheet.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Illustration:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When a business purchases goods but has not yet paid for them, the <\/span><b>payable to the seller<\/b><span style=\"font-weight: 400;\"> will be recorded as a liability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When a business borrows from a bank, the principal and interest due are also recorded as liabilities.<\/span><\/li>\n<\/ul>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> If the obligation is unclear or the amount cannot be reliably measured (for example, a legal dispute without a judgment), the item <\/span><b>not yet recorded as a liability<\/b><span style=\"font-weight: 400;\">, which can only be <\/span><b>explanation<\/b><span style=\"font-weight: 400;\"> in financial statements.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Nguyen_tac_ghi_nhan_va_do_luong_no_phai_tra_theo_chuan_muc_ke_toan_VAS_IFRS\"><\/span>Principles for recognizing and measuring liabilities according to accounting standards (VAS, IFRS)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to VAS 01 \u2013 General Standard, an item can only be recognized as a liability on the Balance Sheet when it simultaneously satisfies the following conditions:<\/p>\n<p><strong>Present Obligation:<\/strong><\/p>\n<ul>\n<li>The business has a legal or constructive obligation arising from a past transaction or event (e.g., unpaid purchases, bank loans).<\/li>\n<\/ul>\n<p><strong>Settlement by Resources:<\/strong><\/p>\n<ul>\n<li>The business must certainly use economic resources (usually money, assets, or services) to pay this obligation in the future.<\/li>\n<\/ul>\n<p><strong>Reliable Measurement:<\/strong><\/p>\n<ul>\n<li>The value of the debt can be reliably determined in monetary terms, with sufficient basis to be reflected in the financial statements.<\/li>\n<\/ul>\n<p>If the conditions are not met, the obligation may only be considered a contingent liability and disclosed in the report, rather than being directly recorded in the Balance Sheet.<\/p>\n<p><strong>Illustration:<\/strong><\/p>\n<ul>\n<li>When a business purchases goods but has not yet paid for them, the amount payable to the seller will be recorded as a liability.<\/li>\n<li>When a business borrows from a bank, the principal and interest due are also recorded as liabilities.<\/li>\n<\/ul>\n<blockquote><p><strong>Note:<\/strong> If the obligation is unclear or its value cannot be reliably determined (e.g., an unresolved legal dispute), the item is not recognized as a liability but is only disclosed in the financial statements.<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Phan_loai_chi_tiet_no_phai_tra_va_cac_khoan_muc_tac_dong_truc_tiep_den_dong_tien\"><\/span>Detailed classification of liabilities and items that directly impact cash flow.<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Liabilities is one of three important components of the balance sheet, reflecting the financial obligations that a business must pay in the future.<\/p>\n<p>Depending on the payment term and the nature of the obligation, liabilities are classified into short-term, long-term and contingent liabilities.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"No_phai_tra_ngan_han_Current_Liabilities\"><\/span><b>Current Liabilities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Current Liabilities <\/b><span style=\"font-weight: 400;\">are financial obligations that a business must pay within 12 months from the date of the financial statement or within a normal business cycle (whichever is longer).<\/span><\/p>\n<p>Important items:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Accounts Payable: Debt arising from the purchase of goods or services but not yet paid for. The Accounts Payable (Account 331) item is one of the largest sources of liabilities and also the source with the highest risk of manual errors. Monthly invoice matching between accounting and suppliers is the most time-consuming and labor-intensive process in the Finance and Accounting department.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Taxes and amounts payable to the State: VAT, corporate income tax, personal income tax, social insurance...<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Payable to employees: Unpaid salaries, bonuses and benefits.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Short-term loan: A loan from a bank or credit institution with a term of less than 12 months.<br \/>\nPayable expenses: Expenses that have been incurred but not yet paid (interest, office rent, utilities, etc.).<\/li>\n<\/ul>\n<figure id=\"attachment_999978843\" aria-describedby=\"caption-attachment-999978843\" style=\"width: 900px\" class=\"wp-caption aligncenter\"><img decoding=\"async\" class=\"wp-image-999978843 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-2.png\" alt=\"what-is-no-question\" width=\"900\" height=\"600\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-2.png 900w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-2-300x200.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-2-768x512.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-2-18x12.png 18w\" sizes=\"(max-width: 900px) 100vw, 900px\" \/><figcaption id=\"caption-attachment-999978843\" class=\"wp-caption-text\">Current liabilities are financial obligations that a business must pay within 12 months from the date of financial statements or within a normal business cycle.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"No_phai_tra_dai_han_Non-current_Liabilities\"><\/span><b>Non-current Liabilities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Long-term liabilities<\/b><span style=\"font-weight: 400;\"> are debts and financial obligations with payment terms of more than 12 months from the date of financial statements or exceeding one business cycle.<\/span><\/p>\n<p>Typical items:<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Long-term loan: Loan from bank or credit institutions with long term.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Bonds issued: Obligation to pay principal and interest to investors who purchase bonds issued by enterprises.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Long-term finance lease liabilities: Arising from asset lease contracts that essentially transfer ownership.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Long-term liabilities: Obligations expected to arise in the future such as product warranty costs, environmental restoration costs, severance pay funds.<\/li>\n<\/ul>\n<figure id=\"attachment_999978845\" aria-describedby=\"caption-attachment-999978845\" style=\"width: 668px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978845 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-4.webp\" alt=\"what-is-no-question\" width=\"668\" height=\"348\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-4.webp 668w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-4-300x156.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-4-18x9.webp 18w\" sizes=\"(max-width: 668px) 100vw, 668px\" \/><figcaption id=\"caption-attachment-999978845\" class=\"wp-caption-text\">Long-term liabilities are debts and financial obligations with payment terms of more than 12 months from the date of financial statements or exceeding one business cycle.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"No_tiem_tang_Contingent_Liabilities_%E2%80%93_Diem_khac_biet\"><\/span><b>Contingent Liabilities \u2013 The Difference<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>Contingent Liabilities <\/b><span style=\"font-weight: 400;\">are obligations that may arise in the future depending on the outcome of uncertain events (for example, the outcome of a lawsuit). Contingent liabilities are not recognized in the balance sheet, but are disclosed in the financial statements only if the likelihood of them arising is significant.<\/span><\/p>\n<p><b>Different from regular liabilities<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Regular liabilities: Once an obligation has arisen, the business is responsible for payment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Contingent Liability: Uncertainty about whether an obligation will arise, only the possibility.<\/span><\/li>\n<\/ul>\n<p><b>Real life example<\/b><span style=\"font-weight: 400;\">:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A business is in the process of a legal dispute with a customer. If the court loses, the business may have to pay 20 billion VND in compensation. This is <\/span><b>contingent liabilities<\/b><span style=\"font-weight: 400;\"> because it is not certain to happen.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Guarantee commitment for subsidiary to borrow money from bank. If subsidiary is insolvent, guarantee obligation will become actual liability.<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_999978846\" aria-describedby=\"caption-attachment-999978846\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978846\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5.jpg\" alt=\"what-is-no-question\" width=\"1200\" height=\"556\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5.jpg 2560w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-300x139.jpg 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-1024x475.jpg 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-768x356.jpg 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-1536x712.jpg 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-2048x950.jpg 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-5-18x8.jpg 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978846\" class=\"wp-caption-text\">Contingent liabilities are obligations that may arise in the future depending on the outcome of uncertain events.<\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Cong_thuc_tinh_va_cac_chi_so_phan_tich_No_phai_tra_la_gi\"><\/span><b>What is the formula and analysis indexes of Liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Paying attention to the formula and indicators for analyzing payables means paying attention to overall financial health, thereby helping businesses proactively face debt repayment pressure, maintain prestige and long-term sustainability.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cong_thuc_tinh_No_phai_tra\"><\/span><b>Formula for calculating Liabilities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There are two common approaches to identifying and analyzing liabilities:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate total debt at a point in time<\/b><span style=\"font-weight: 400;\">, and<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Calculate average payables during the period<\/b><span style=\"font-weight: 400;\"> (used in trend analysis or financial planning).<\/span><\/li>\n<\/ul>\n<p><b>(1) Total Liabilities Formula: Liabilities = Total Assets \u2013 Owner&#039;s Equity<\/b><\/p>\n<p><span style=\"font-weight: 400;\">This is the basic formula for determining the total financial obligations that a business must pay, showing the balance relationship on <\/span><b>Balance sheet.\u00a0<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For example:<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> If the business has:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Total assets: 50 billion VND<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Equity: 20 billion VND<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> \u2192 Liabilities = 50 \u2013 20 = 30 billion VND<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">This shows that 60% of the business&#039;s assets are financed by debt.<\/span><\/p>\n<p><b>(2) Average Liabilities Formula:<\/b><\/p>\n<p><b>Average payables = (Accounts payable at beginning of period + Accounts payable at end of period)\/2<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Used in financial analysis to calculate turnover ratios, for example: Accounts payable turnover, average payment period. Helps accurately assess the debt situation throughout the period, avoiding errors when only taking the final number.<\/span><\/p>\n<p><b>For example:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Beginning debt: 25 billion<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Ending debt: 35 billion<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><span style=\"font-weight: 400;\"> \u2192 Average debt = (25 + 35) \/ 2 = <\/span><b>30 billion VND<\/b><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">If the average debt increases steadily over the periods, the business needs to consider <\/span><b>Reasons for increased borrowing \u2013 increased investment or increased operating costs<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Chi_so_danh_gia_suc_khoe_tai_chinh\"><\/span><b>Financial health index<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Debt ratios help businesses quantify their financial risk levels and their ability to balance debt and equity. The two most important ratios are the Debt to Equity Ratio (D\/E) and the Debt to Total Assets Ratio (Debt Ratio).<\/p>\n<p><strong>Debt to Equity Ratio (D\/E Ratio):<\/strong><\/p>\n<ul>\n<li><b>Recipe:<\/b><b><br \/>\n<\/b><span style=\"font-weight: 400;\"> D\/E = Total Liabilities\/Equity<\/span><\/li>\n<li><b>Meaning:<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>D\/E &gt; 1:<\/b><span style=\"font-weight: 400;\"> The company is using more debt than equity to finance its operations. This can help it expand rapidly, but it also increases its financial risk. For example, a company with a D\/E of 2 means it has twice as much debt as equity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>D\/E &lt; 1:<\/b><span style=\"font-weight: 400;\"> Equity capital is dominant, showing higher financial security, less dependence on debt. However, businesses may miss out on rapid growth opportunities due to financial leverage.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Example interpretation by industry:<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business <\/span><b>manufacturing \u2013 heavy industry<\/b><span style=\"font-weight: 400;\"> D\/E = 1.5\u20132 is acceptable because large investment capital is required.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Business <\/span><b>services, technology<\/b><span style=\"font-weight: 400;\"> Usually maintain D\/E &lt; 1 to ensure financial flexibility.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure id=\"attachment_999978848\" aria-describedby=\"caption-attachment-999978848\" style=\"width: 690px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978848 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-7.png\" alt=\"what-is-no-question \" width=\"690\" height=\"441\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-7.png 690w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-7-300x192.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-7-18x12.png 18w\" sizes=\"(max-width: 690px) 100vw, 690px\" \/><figcaption id=\"caption-attachment-999978848\" class=\"wp-caption-text\">Debt to Equity Ratio (D\/E Ratio)<\/figcaption><\/figure>\n<ul>\n<li><i><span style=\"font-weight: 400;\">Note:<\/span><\/i><span style=\"font-weight: 400;\"> High D\/E isn&#039;t always bad \u2014 if the business has <\/span><b>stable cash flow and good profit margin<\/b><span style=\"font-weight: 400;\">, leveraging debt can help <\/span><b>increase return on equity (ROE)<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><strong>Debt Ratio<\/strong><\/p>\n<ul>\n<li><b>Recipe:<\/b><span style=\"font-weight: 400;\"> Debt\\ Ratio = Total Liabilities\/Total Assets<\/span><\/li>\n<li><b>Meaning:<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Debt Ratio &gt; 0.5:<\/b><span style=\"font-weight: 400;\"> More than 50% of assets are formed from debt, showing high risk level and large debt repayment pressure.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Debt Ratio &lt; 0.5:<\/b><span style=\"font-weight: 400;\"> Most assets are financed by equity, lower risk.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<figure id=\"attachment_999978850\" aria-describedby=\"caption-attachment-999978850\" style=\"width: 960px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978850 size-full\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-9.webp\" alt=\"what-is-no-fault-9\" width=\"960\" height=\"640\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-9.webp 960w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-9-300x200.webp 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-9-768x512.webp 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-9-18x12.webp 18w\" sizes=\"(max-width: 960px) 100vw, 960px\" \/><figcaption id=\"caption-attachment-999978850\" class=\"wp-caption-text\">Debt Ratio<\/figcaption><\/figure>\n<p>Compare 02 indexes:<\/p>\n<ul>\n<li><b>D\/E Ratio<\/b><span style=\"font-weight: 400;\"> Focus on the relationship between debt and equity \u2192 important to investors and shareholders.<\/span><\/li>\n<li><b>Debt Ratio<\/b><span style=\"font-weight: 400;\"> shows the proportion of debt in total assets \u2192 important for creditors and credit institutions when assessing solvency.<\/span><\/li>\n<\/ul>\n<p><b>For example:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Total assets: 100 billion, Liabilities: 60 billion \u2192<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Debt Ratio = 60 \/ 100 = <\/span><b>0.6 (60%)<\/b><\/p>\n<p><span style=\"font-weight: 400;\">\u2192 Businesses are using <\/span><b>60% loan capital to finance assets<\/b><span style=\"font-weight: 400;\">, medium-high financial risk level.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Vai_tro_Rui_ro_va_Cac_yeu_to_anh_huong_den_No_phai_tra\"><\/span><b>Role, Risks and Factors Affecting Liabilities<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Enterprises need to pay attention to the role, risks and factors affecting liabilities because this is an important part of the financial structure, directly affecting the ability to pay and the level of financial security.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Vai_tro_Rui_ro_cua_No_phai_tra_la_gi\"><\/span><b>What is the Role and Risks of Liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><b>The role of liabilities:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Financial leverage:<span style=\"font-weight: 400;\"> Liabilities help businesses expand operations, invest, and grow faster without increasing equity.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Optimizing capital costs:<span style=\"font-weight: 400;\"> In many cases, interest can be tax deductible, helping businesses reduce their cost of capital.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Improve ROE (Return on Equity): <span style=\"font-weight: 400;\">When a business uses debt effectively, <\/span>ROE can increase significantly<span style=\"font-weight: 400;\">, showing better profitability on the same amount of equity.<\/span><\/li>\n<\/ul>\n<p><b>Risk of liabilities:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Risk of insolvency: If there is too much debt or weak cash flow, the business may face liquidity risks or even bankruptcy.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Long-term financial pressures: Interest and recurring debt obligations reduce business flexibility.<\/span><\/li>\n<\/ul>\n<p><b>Debt reduction is not always good:<\/b><\/p>\n<p>This is an insight that many managers overlook.<\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">When liabilities decrease sharply, it may be a sign that the business is downsizing and no longer using borrowed capital to grow.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">On the contrary, a reasonable and well-managed debt level is a positive signal, showing that the business knows how to use external capital to increase productivity and expand the market.<\/li>\n<\/ul>\n<blockquote><p><em>Debt optimization is not about \u201ccutting debt\u201d, but about \u201cleverage management\u201d \u2013 using it at the right time, at the right level and for the right purpose.<\/em><\/p><\/blockquote>\n<h3><span class=\"ez-toc-section\" id=\"Cac_yeu_to_tac_dong_chinh_den_no_phai_tra_la_gi\"><\/span><b>What are the main factors affecting liabilities?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Debt size<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Small debt: Less interest pressure, safer but limited expansion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Large debt: Can grow rapidly but carries the risk of financial imbalance.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sales\/Purchase Policy<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Businesses that are on credit from suppliers (trade credit) will have high liabilities.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Conversely, if the business pays its suppliers immediately, its liabilities will be lower.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Business cycle<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">During peak seasons, businesses often increase short-term borrowing to import goods, produce or expand services. Conversely, during a downturn, debt should be tightly controlled to avoid cash flow risks.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Macroeconomic situation<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\">Interest rates, inflation, exchange rates, and the State Bank&#039;s monetary policy directly affect the cost of borrowing and the ability to repay debt.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\">When the economic environment is unstable, businesses need to diversify their capital sources to avoid relying entirely on bank loans.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Chien_luoc_Quan_ly_No_phai_tra_hieu_qua_voi_Giai_phap_tu_Bizzivn\"><\/span><b>Effective Debt Management Strategy with Solutions from Bizzi.vn<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">What is the difference between traditional accounts payable management and technology applications like Bizzi.vn? Bizzi.vn not only replaces manual operations, but also helps businesses upgrade accounts payable management into a competitive advantage.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Quan_ly_no_theo_phuong_phap_truyen_thong\"><\/span><b>Traditional debt management<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In many businesses, accounts payable management is still based on manual methods such as tracking with books, Excel spreadsheets or periodic reconciliation between the accounting department and partners. This method, although familiar, has many potential risks: data is easily distorted, takes time to review, difficult to control debt due and puts great pressure on cash flow.<\/span><\/p>\n<p><b>What are the disadvantages of traditional management of payables?<\/b><\/p>\n<p><span style=\"font-weight: 400;\">When managing payables in the traditional way (paper books, manual Excel, manual reconciliation), businesses often encounter the following shortcomings:<\/span><\/p>\n<ul>\n<li aria-level=\"1\"><b>Errors and inaccuracies<\/b>\n<ul>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Manual data entry can easily lead to data errors (wrong invoices, duplicate data)<\/span><\/li>\n<li aria-level=\"1\"><span style=\"font-weight: 400;\">Difficult to control when transaction volume is large, especially for businesses with many suppliers.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Lack of timeliness<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Debt figures are not updated in real time.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">When quick decisions are needed (e.g., payments, negotiations with suppliers), information is often delayed.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Time consuming and labor intensive<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accountants have to spend many hours entering data, storing documents, and comparing invoices \u2192 high operating costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is easy to get \u201cbacklogged\u201d during the accounting period or at the end of the quarter.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Risk in payment<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">There is no automatic warning when a debt is about to become due.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Businesses are vulnerable to penalties for late payments or missed early payment discounts.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li aria-level=\"1\"><b>Difficult to analyze and manage cash flow<\/b><\/li>\n<\/ul>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lack of in-depth reports (Debt Aging Report, DSO, Cash Flow Forecast).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is difficult for management to assess the actual financial status to make strategic decisions.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Ung_dung_Cong_nghe_vao_Quan_tri_No_phai_tra_%E2%80%93_Loi_the_canh_tranh\"><\/span><b>Applying Technology to Accounts Payable Management \u2013 Competitive Advantage<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Bizzi.vn offers a modern, optimal and superior debt management solution thanks to the application of technology:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Automatically collect, check, and verify the validity of input invoices.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Automatically reconcile accounts payable (Invoice Matching) with purchase orders (PO) and warehouse receipts.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Automatic warning when debt is about to be due or overdue, helping businesses avoid the risk of late payment.<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\">Provides in-depth metrics such as Debtor Aging Report, Days Sales Outstanding (DSO), helping administrators quickly assess financial status and make accurate decisions.<\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">With these features, Bizzi.vn not only helps businesses control their payables but also turns financial management into a real competitive advantage.<\/span><\/p>\n<figure id=\"attachment_999978849\" aria-describedby=\"caption-attachment-999978849\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-999978849\" src=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8.png\" alt=\"what-is-no-question \" width=\"1200\" height=\"735\" title=\"\" srcset=\"https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8.png 2048w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8-300x184.png 300w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8-1024x627.png 1024w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8-768x470.png 768w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8-1536x941.png 1536w, https:\/\/bizzi.vn\/wp-content\/uploads\/2025\/10\/no-phai-tra-la-gi-8-18x12.png 18w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-999978849\" class=\"wp-caption-text\">Bizzi assists in tracking and reconciling accounts receivable and key indicators, helping to manage accounts receivable effectively.<\/figcaption><\/figure>\n<h3><span class=\"ez-toc-section\" id=\"Suc_manh_cua_su_tich_hop_%E2%80%93_Bizzivn_va_he_thong_ERP\"><\/span><b>The Power of Integration \u2013 Bizzi.vn and ERP System<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Bizzi.vn&#039;s standout feature lies in its seamless integration with existing systems. <a href=\"https:\/\/bizzi.vn\/erp-la-gi\/\">ERP<\/a> Large systems like SAP, Microsoft Dynamics 365, and Oracle NetSuite. Seamless integration with leading ERP systems (such as SAP, Oracle NetSuite, and Microsoft Dynamics 365 Finance) ensures that accounts receivable data is synchronized in real time, completely eliminating repetitive manual data entry and guaranteeing the absolute accuracy of the balance sheet.<\/p>\n<p>This affirms that Bizzi.vn is not only a debt management tool, but also a comprehensive financial solution, capable of accompanying large-scale enterprises on the path to professionalization and optimization of operations.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Cau_hoi_thuong_gap_ve_No_phai_tra_la_gi\"><\/span><b>FAQ What is a Liability?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below is a summary and answers to some related questions about payables:<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"_No_phai_tra_co_phai_la_chi_phi_khong\"><\/span><b>\u00a0Are liabilities an expense?<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u2192 No. Liabilities are financial obligations that a business must pay in the future, while expenses are the expenditures incurred during the period to generate revenue.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Ty_le_no_bao_nhieu_la_an_toan\"><\/span><strong>What debt ratio is safe?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u2192 Normally, Debt Ratio &lt; 0.5 or D\/E &lt; 1 is considered safe. However, the \u201creasonable\u201d level depends on the industry and the profitability of the business.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lam_the_nao_de_xac_dinh_no_phai_tra_cua_doanh_nghiep\"><\/span><b>How to determine the liabilities of a business?<\/b><b><br \/>\n<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>\u2192 Based on the Balance Sheet, liabilities are determined by the formula:<\/p>\n<p>Liabilities = Total Assets \u2013 Owner&#039;s Equity<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Lam_the_nao_de_xac_dinh_no_phai_tra_cua_doanh_nghiep-2\"><\/span><strong>How to determine the liabilities of a business?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Liabilities are determined through <\/span><b>balance sheet<\/b><span style=\"font-weight: 400;\">, including:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Short-term debt<\/b><span style=\"font-weight: 400;\">: payable to suppliers, short-term loans, payable expenses\u2026<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Long-term debt<\/b><span style=\"font-weight: 400;\">: long-term loans, bond issuance, deferred tax payable\u2026<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Khi_nao_can_trich_lap_du_phong_phai_tra\"><\/span><strong>When is it necessary to set up a provision for payables?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0\u2192 When the business has <\/span><b>current obligations<\/b><span style=\"font-weight: 400;\"> (contractual, legal, or other commitment), <\/span><b>will definitely have to pay in the future<\/b><span style=\"font-weight: 400;\"> and <\/span><b>amount that can be estimated reliably<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ket_luan\"><\/span><b>Conclude<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Managing liabilities is not only about reducing debt for safety, but also about balancing the risks and benefits of financial leverage. The above article has provided information related to what liabilities are, and at the same time shows that an effective debt management strategy is not only about reducing debt for safety, but also about proactive management: balancing risks - profits - growth opportunities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traditional methods such as books and excel will be suitable for small businesses with few transactions. However, when the business grows and the transaction volume increases, this management method becomes a barrier, directly affecting financial efficiency and competitiveness.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Don&#039;t let manual accounts payable management become a financial barrier. Bizzi helps businesses shift from reactive to proactive management, transforming financial responsibility into a safe leverage advantage. Request a Custom Demo: Experience our automated accounts payable reconciliation and input invoice processing workflow tailored to your ERP system. For a consultation on the solution best suited to your business needs and to experience our features, register here to schedule a demo: https:\/\/bizzi.vn\/dat-lich-demo\/\u00a0\u00a0<\/span><\/p>","protected":false},"excerpt":{"rendered":"<p>Liabilities are considered a core factor that determines the financial health and sustainability of a business. Learn more\u2026<\/p>","protected":false},"author":56,"featured_media":999978847,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"class_list":["post-999978841","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-so-tay-ke-toan"],"acf":[],"_links":{"self":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/comments?post=999978841"}],"version-history":[{"count":3,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978841\/revisions"}],"predecessor-version":[{"id":999979547,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/posts\/999978841\/revisions\/999979547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media\/999978847"}],"wp:attachment":[{"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/media?parent=999978841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/categories?post=999978841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bizzi.vn\/en\/wp-json\/wp\/v2\/tags?post=999978841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}