A monetary liability is a liability whose value is measured and stated in monetary terms (cash amounts). As such, it is a fixed obligation that an entity has to pay/ settle/ transfer. As opposed to a non-monetary liability, a monetary liability reflects an obligation whose amount is clearly stated in a invoice, a loan agreement, etc., in monetary terms. The amount of the obligation to be paid is definitely expressed in monetary terms.

Examples of monetary liabilities include:

• Trade payables.
• Notes payable.
• Accruals and bills payable.
• Refundable deposits.
• Dividends payable.
• Other amounts payable (taxes, wages, etc.)