Debt

Definition:

A form of liability that represents money borrowed from banks or other institutions, or any money owed to another party.

Examples:

Comparing a company’s accounts receivable and accounts payable statements is often a quick way of determining their level of debt.

Some forms of debt are beneficial; for example, when a company invests in upgraded machinery to streamline their production process, the increase in future revenue can be greater than the initial outlay of funds.