Total Liabilities

Definition: Total Liabilities is the sum of all current liabilities and long-term (non-current) liabilities reported on the balance sheet. It represents every …

Total Liabilities is the sum of all current liabilities and long-term (non-current) liabilities reported on the balance sheet. It represents every legal obligation a company owes to outside parties, including accounts payable, accrued expenses, deferred revenue, short-term and long-term debt, lease liabilities, pension obligations, and deferred tax liabilities. Total Liabilities = Current Liabilities + Long-Term Liabilities. By the accounting equation, Total Liabilities = Total Assets − Total Equity. It is broader than 'Total Debt' because it includes non-interest-bearing obligations like accounts payable and deferred revenue. OpenStax Principles of Finance uses Total Liabilities (not Total Debt) in solvency ratios such as Debt-to-Assets and Debt-to-Equity.