Hi!
No they are not the same. In fact, debt is a form of liability.
Debt is often borrowings from other parties, which could include other companies, banks, governments and investors. However, liabilities are obligations owed to external parties in a business. This could include accounts payables, which is money owed to suppliers. There are some form of liabilities, such as unearned revenue, which are non-monetary obligations. In fact, they are obligations to perform or provide a serivce or product to your customers who have already paid.
Another difference between debt and other forms of liabilities, is that debt are usually interest bearing, while the others are not. Debt is often seen as a way to raise financing too. That is why with equity they are seen as the capital structure of the company.
Hi!
No they are not the same. In fact, debt is a form of liability.
Debt is often borrowings from other parties, which could include other companies, banks, governments and investors. However, liabilities are obligations owed to external parties in a business. This could include accounts payables, which is money owed to suppliers. There are some form of liabilities, such as unearned revenue, which are non-monetary obligations. In fact, they are obligations to perform or provide a serivce or product to your customers who have already paid.
Another difference between debt and other forms of liabilities, is that debt are usually interest bearing, while the others are not. Debt is often seen as a way to raise financing too. That is why with equity they are seen as the capital structure of the company.