When do liabilities increase?

Liabilities increase when a company borrows money, purchases goods or services on credit, or incurs expenses that have not yet been paid. They can also rise from the acquisition of new financial obligations, such as loans or leases. Additionally, liabilities may increase when a company recognizes accrued expenses or provisions for future payments. Essentially, any transaction that obligates the company to pay in the future contributes to an increase in liabilities.