What is the financial term for the obligations a company must pay to creditors?

The financial term that describes the obligations a company must pay to creditors is liabilities. Liabilities represent the company's legal debts or financial obligations that arise during the course of business operations. They include loans, accounts payable, mortgages, and other forms of debt that require future payment.

In contrast, assets refer to what the company owns that has value, such as cash, inventory, or real estate. Equity signifies the ownership interest in the company, representing the residual interest in the assets after deducting liabilities, essentially what the owners claim once all debts are settled. Revenue pertains to the income generated from normal business operations, such as sales of products or services. Understanding these distinctions is essential for grasping a company's financial position and health.