Total Liabilities

What are 'Total Liabilities'

Total liabilities refer to the aggregate of all debts an individual or company is liable for. Total liabilities can be easily calculated by summing all of one's short-term and long-term liabilities, along with any off balance sheet liabilities which corporations may incur. On the balance sheet, total liabilities plus equity must equal total assets.

BREAKING DOWN 'Total Liabilities'

A company's total liabilities can be split up into two basic parts, short- and long-term liabilities. Short-term liabilities are typically liabilities which are due within one year or less. Long-term liabilities are those with a time horizon of maturity is past the one year point. Liabilities such as loans, leases and taxes due can fall into either category.

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