What does total liabilities mean on the CPA exam?
Total liabilities. Everything the entity owes, added up. Total assets less total liabilities is equity.
Which CPA exam sections use total liabilities?
Total liabilities appears in 6 CPA exam sections: AUD, BAR, FAR, ISC, REG, TCP.
Related terms
- total assets: Everything the entity controls that is expected to produce future benefit, added up.
- partnership liabilities: Debt of the partnership, allocated among the partners and added to their outside basis.
- balance sheet: A snapshot at one date of what the entity owns, what it owes, and the owners' residual.
- rights and obligations: The assertion that the entity genuinely owns the assets it reports and genuinely owes the liabilities.
- net assets: Assets less liabilities.
- net position: A government's assets plus deferred outflows, less liabilities and deferred inflows.