debt
Definition
Duty or obligation to pay money, deliver goods, or render service under an express or implied agreement. One who owes, is a debtor or debitor; one to whom it is owed, is a debtee, creditor, or lender. Use of debt in a firm's financial structure creates financial leverage that can multiply yield on investment—provided returns generated by debt exceed its cost. Because the interest paid on debt can be written off as an expense, debt is normally the cheapest type of long-term financing.
debt is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
debt appears in the definitions of the following terms:
approval authority,
return on capital (ROC),
cost of capital,
national debt,
swap,
dilemma,
general partner,
current liabilities to net worth ratio,
alter ego,
pre-tax debt service coverage
and
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