What does debt refer to in financial terms?

In financial terms, debt refers specifically to the amount of obligations owed to creditors. This can include loans, bonds, and any other form of borrowing that requires repayment, typically involving interest. When an organization takes on debt, it enters into an agreement to pay back the borrowed amount over time, which is a crucial aspect of managing financial leverage and capital structure. Understanding debt is essential for assessing an organization's financial health, as it affects both liquidity and solvency.

The other options do not accurately define debt. The amount of assets owned by an organization pertains to its total resources, while total revenue focuses on income generated from business operations, and current cash flow reflects the liquidity available to meet immediate financial obligations. None of these terms relate to the obligations an organization owes, which is the core aspect of defining debt.