What is considered a liability on a balance sheet?

A liability on a balance sheet refers specifically to a company's financial debt or obligations that arise during business operations. This includes loans, accounts payable, mortgages, and any other debts that the company is required to fulfill in the future. Liabilities are essentially what the company owes to outside parties and represent claims against the company’s assets. They are important for measuring the financial health of a business, as they indicate the amount of financial leverage the company is using.

In contrast, the other options do not correctly define liabilities. Assets that can be liquidated fall into a different category and refer to things that the company owns which can be converted into cash. Total revenue relates to the income generated from the company's business activities, which is separate from liabilities. Lastly, a company's equity or ownership value concerns the residual interest in the assets after deducting liabilities, which is fundamentally different from liabilities themselves.