What is the term used to describe "An obligation or a debt"?

Liability is the term used to describe an obligation or a debt. It refers to the legal responsibility an individual or organization has to pay back a borrower's financial commitment or to settle a financial obligation. This concept is fundamental in accounting and finance, as liabilities are recorded on the balance sheet and represent future sacrifices of economic benefits that an entity must make to settle debts.

An example of a liability would be loans, unpaid invoices, or any other form of debt that requires repayment. This term is crucial for understanding an organization's financial health, as liabilities indicate what is owed and can affect liquidity and solvency.

The other concepts mentioned—assets, equity, and obligation—relate to different aspects of financial management. Assets represent resources owned by an entity, equity indicates the ownership value after liabilities are deducted, and while "obligation" can refer to liability, it is a broader term that does not specifically capture the financial context of a debt.