A Credit Liability Account is an account that records the total amount of credit extended by a business to its customers. In essence, it is a record or ledger of all of the customer debt owed by the business. The balance in this account represents the total amount of money that the business is exposed to in terms of unpaid debt. By having a Credit Liability Account, a business can quickly identify which accounts are overdue and maintain accurate records of how much customers owe the business. It is important for businesses to keep track of their Credit Liability Accounts in order to protect themselves from possible bankruptcy and other financial risks.