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A liability is anything you owe. Accounts Payable is a liability, not short-term debt. Debt is a liability that does incur interest.

So, let me take a ridiculous extreme.

If I charge something to my Visa card it is a liability for up to around 30 days. But if I do not pay all of it, the unpaid part starts running up interest and service charges. So now it is debt. Right?
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