Ronald St Facile graduated from North Eastern University with a bachelor of science in accounting and finance. A senior accountant at Infinitte, LLC, Ronald St Facile specializes in cash flow analysis and account reconciliation. His responsibilities also include calculating liabilities.
Total liabilities are a company’s debt and its financial obligations. Liabilities reveal whether the business is making a profit or registering a loss. Liabilities include short-term or long-term. Short-term liabilities are wages, salaries, and all types of taxes, while long-term liabilities include credit lines and long-term notes payable.
Total liabilities is also the difference between shareholder equity and total assets. If the total liabilities exceed the value of the firm's assets, it indicates that the business registers loss and leads to asset deficiency. This is a sign that could predict bankruptcy if things don’t change. Asset deficiency implies that assets are not used properly and show a decline in sales as they fail to generate profits and revenues. This can lead to the end of the business if it is not handled correctly. A restructure could help a business in decline as opposed to liquidation to pay the debts.
