If you want to become a serious investor, may I suggest you do a bit of research and training in accounting and economics terms.
Quote - In financial accounting, a liability is defined as an obligation of an entity arising from past transactions or events, the settlement of which may result in the transfer or use of assets, provision of services or other yielding of economic benefits in the future.individual or group must adopt corporate charter and file it with the state.
They embody a duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services or other yielding of economic benefits, at a specified or determinable date, on occurrence of a specified event, or on demand; The duty or responsibility obligates the entity leaving it little or no discretion to avoid it; and, The transaction or event obligating the entity has already occurred. Liabilities in financial accounting need not be legally enforceable; but can be based on equitable obligations or constructive obligations. An equitable obligation is a duty based on ethical or moral considerations. A constructive obligation is an obligation that can be inferred from a set of facts in a particular situation as opposed to a contractually based obligation.
The accounting equation relates assets, liabilities, and owner's equity:
Assets = Liabilities + Owner's Equity The accounting equation is the mathematical structure of the balance sheet." end of quote
The WA Government backs the Perth Mint, its acts as a surety for those who purchase silver and gold certifcates. So if something goes wrong- the WA Government has this as a liability on their balance sheets.
