Total Liabilities

Total Liabilities is an Accounting Term, covering Liabilities or both Creditors and Short-Term and Long-Term and Shareholder’s Equity. This is what a Company collectively owes to all its invested interests.

As the Balance Sheet must balance, Total Liabilities must equal Total Assets. Total Liabilities is an accounting term, defining one of the two main Balance Sheet classifications. Total Liabilities is the sum of Current Liabilities and Long-Term Debt and other Long-Term Liabilities plus Shareholder Equity. Keep in mind Shareholder Capital is also what the company owes to Shareholders. It is a Liability. Total Liabilities are often broadly separated into Liabilities or Creditors and Shareholders Equity. The key concept to keep in mind. Shareholders are rewarded for accepting the Business Risk of a Company they own. Creditors are taking the Financial Risk in dealing with the Company. Creditors are in a senior position compared to Shareholders.