Are all liabilities considered debt?

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Sousa 0 Comments

Are all the liabilities that a company has on the statement of financial position considered debt? What about the provisions that a company creates?

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score 0 · Answer 1 · 2012-12-02T19:08:31+00:00

Liabilities include debt but not only debt. So, I would say that debt is considered a liability and not the other way around.

Liability is anything that is expected to cause economic benefit to flow away from the company which includes debt, payables, contingent liabilities, unpaid tax and other unpaid expenses etc.