What is the 游戏电竞线上外围APP v5.2 difference between liability and debt?

Definition of Liability

In accounting and bookkeeping, the term liability refers to a company's obligation arising from a past transaction.

Examples of Liabilities

A few of the more common types of liabilities include:

  • Accounts payable
  • Loans or notes payable
  • Accrued expenses payable
  • Deferred revenues
  • Bonds payable
  • Income taxes payable and deferred income taxes

Definition of Debt

When some people use the term debt , they are referring to all of the amounts that a company owes. In other words, they use the term debt to mean total liabilities .

Others use the term debt to mean only the formal, written loans and bonds payable.

Examples of Debt

As an example of debt meaning the total amount of a company's liabilities, we look to the debt-to-equity ratio . In the calculation of that financial ratio, debt means the total amount of liabilities (not merely the amount of short-term and long-term loans and bonds payable).

Others use the word debt to mean only the formal, written financing agreements such as short-term loans payable, long-term loans payable, and bonds payable.

This is a good reminder that people have different perspectives and understandings of accounting terms.

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