Difference between debt and liability

This might be a dumb question, but I can’t seem to find a clear answer. When calculating the debt-to-equity ratio, is Total Debt just equal to Total Liability? If not, what are some items that are categorized as liability but not debt? Thanks,

its generally the case for many questions. but in some rare occasions (i cant remember which ones), some asset items are treated as debt and some liablility items are not considerred debt for analysis purposes.

I’m not exactly sure but I’m thinking for debt they mean short term bonds, long term bonds, notes, etc (Financing). Liabilities which wouldn’t be counted as debt are things such as wages payable, unearned revenue, etc. Hope this helps.

Yes, debt is just everything that is plainly debt, long-term and short-term). Liabilities included debt and other current liabilities such as payables.

So does “Total Debt” not include short-term payables?

ezbentley Wrote: ------------------------------------------------------- > So does “Total Debt” not include short-term > payables? Should not

Debts an interest bearing Liabilities are not necessarily interest bering They both a form of financing.

For anyone else who is wondering the same thing… according to this site:

http://www.accountingcoach.com/blog/what-is-the-difference-between-liability-and-debt

the debt-to-equity ratio assumes debt and liabilities are the same thing.

Which is different to what Reading 32 Example 12 classifies it as where debt means debt and liabilities are separate.

The question then is… do financial standards like IFRS and US GAAP talk about this distinction anywhere? Do these standards specifically force companies to differentiate and report debt separate from liabilities?

Debt bears interest.

Not all liabilities do.

Great, thanks.

You’re welcome.