Islamic Finance
Ba’i al-Juzaf
April 1, 2021
Exchanges
Blind Broker
April 2, 2021

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. Examples of monetary liabilities include trade payables, notes payable, and other amounts payable (taxes, wages, etc).

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.

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