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Total Liabilities And Owner’s Equity

oboloo Glossary

Total Liabilities And Owner’s Equity

Total Liabilities and Owner’s Equity, or TLOE, is the sum of all of a company’s liabilities and its owner’s equity accounts. In other words, it’s the total amount of money owed by a business to both outside sources and the owner themselves. This figure is important for businesses because it helps them to measure the financial state of the company and determine how much debt they are carrying at any given time. It also gives an indication of a company’s profitability and liquidity. With this in mind, it’s crucial that companies keep an accurate account of all their liabilities and owner’s equity so they can accurately assess their financial situations on an ongoing basis.

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