Definition of Total liabilities:
Total liabilities are the combined debts and obligations that an individual or company owes to outside parties. All assets of a company are either owned by the entity and classified as equity or are subject to future obligations and recorded as a liability. On the balance sheet, total liabilities plus equity must equal total assets.
Liabilities can be described as an obligation between one party and another that has not yet been completed or paid for. They are settled over time through the transfer of economic benefits, including money, goods, or services.
The total amount of all financial obligations of a company including all creditor claims on company assets.
How to use Total liabilities in a sentence?
- Total liabilities are the combined debts that an individual or company owes. .
- On the balance sheet, total liabilities plus equity must equal total assets.
- They are generally broken down into three categories: short-term, long-term, and other liabilities.
- We had a lot of total liabilities to look after and we could not forget about them, or we would be forever lost.
- The bankruptcy courts agreed with the petitioners in deeming the corporation insolvent insolvent as their total liabilities exceeded their assets.
- Your financing institution is fully responsible for your total liabilities across all of your bank accounts and across all platforms.
Meaning of Total liabilities & Total liabilities Definition