Which statement defines Liabilities?

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Liabilities are present obligations of an entity arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits. This means the entity currently owes something to others, and fulfilling that obligation will require paying cash or transferring other assets. These obligations come from past transactions or events, not from future plans. Examples include loans payable, accounts payable, accrued expenses, and taxes payable. The key point is the expectation of an outflow of resources to settle the obligation. By contrast, assets are resources the entity controls, revenues are earnings from operations, and profitability is a measure of overall net income, not a definition of what a liability is.