Multiple Choice
Which type of liability is most likely to be insurable?
27
views
9. Current Liabilities
Types of Liabilities
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following are the debts or obligations of a business?
A
Revenues
B
Liabilities
C
Assets
D
Owner's equity
Verified step by step guidance1
Understand the definition of liabilities: Liabilities are debts or obligations that a business owes to external parties, such as loans, accounts payable, or other financial commitments.
Review the other terms provided in the question: Revenues, assets, and owner's equity. These are not classified as debts or obligations.
Revenues represent the income earned by a business from its operations, such as sales or services provided.
Assets are resources owned by the business, such as cash, inventory, or equipment, which are used to generate revenue.
Owner's equity represents the owner's claim on the assets of the business after liabilities are deducted. It is not a debt or obligation.
Related Videos
Related Practice
Types of Liabilities practice set
Problem sets built by lead tutorsExpert video explanations