I understand DEBT is something what the company has borrowed as a loan from others.
What about liabilities? What does it mean?
In money control I see
Total Liabilities = Total Debt + Networth
while Networth includes few points as shown in this snapshot.
Could someone explain please?
What is the difference between Liability and Debt?
• Debt is a sub category of liabilities.
• Debt is always in the form of money, whereas liability is anything that costs a business money
• Debt is always more serious than liability
• All debts are liabilities, but not all liabilities are debts
All that you want to know about Liabilities is here -
There are few points coming under liabilities, like total share capital, equity share capital, reserves etc. What are they?
They all come under liability cos it belongs to shareholders and is payable to them in case the company winds up…
If the company file bankruptancy, do you mean they will give back the share price back to shareholders.
I thought they are obliged only for book value and even in few cases, they wont give anything back!
Anyways, thanks for clearing that!