Debts owed by a business are referred to as

Debts owed by a business are referred to as "liabilities." In financial accounting, liabilities are defined as obligations that the company must settle in the future due to past transactions or events. These can include loans, accounts payable, mortgages, deferred revenues, and any other forms of debt. Liabilities are typically categorized into two main types:

1. Current Liabilities: These are obligations that are expected to be settled within one year, such as short-term loans and accounts payable.

2. Long-Term Liabilities: These are debts and obligations that are due in more than one year, including long-term loans, bonds payable, and lease obligations.

Understanding liabilities is crucial for analyzing a company's financial health, as they represent what the business owes to outside parties, impacting its net worth and cash flow.