What term describes any debts that a business or individual owes?

The term that describes any debts that a business or individual owes is liabilities. Liabilities are financial obligations that arise during the course of business operations or personal finance, representing claims against the party's assets. They can include loans, mortgages, accounts payable, and other obligations that require future payment.

In the context of financial statements, liabilities are one of the three main components, alongside assets and equity. Understanding liabilities is crucial for assessing the financial health of a business or individual, as they provide insight into the level of debt relative to assets and overall financial stability.

Assets refer to resources owned by a business or individual that have economic value. Equities generally refer to ownership interests in a business, representing the residual interest in the assets after deducting liabilities. Investments involve the allocation of resources, usually money, with the expectation of generating income or profit. Each of these terms is related to financial health and accounting but specifically does not encapsulate the concept of debts owed, making liabilities the appropriate choice in this instance.