A Debit Liability Account is a type of financial account used to track and record liabilities, or amounts owed to someone by the business. It might include purchases on credit, loans taken out, or money owed to creditors in accounts payable. This type of liability account is vital for tracking obligations and determining the amount of money that the business owes outside entities during any point in time. By understanding and monitoring this figure, businesses can make better informed decisions about their finances and potential risk exposure.