Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

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Multiple Choice

In financial accounting, what is the term for a person or business to whom a liability is owed?

Creditor

Owner

Debtor

Investor

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Verified step by step guidance

Understand the concept of liability: A liability is an obligation or debt that a person or business owes to another party, typically arising from borrowing money, purchasing goods or services on credit, or other financial transactions.

Identify the role of the party to whom the liability is owed: This party is the one who has provided the loan, goods, or services and expects repayment or compensation.

Review the definitions of the given options: A 'Creditor' is the person or business to whom the liability is owed. An 'Owner' is someone who holds ownership in the business. A 'Debtor' is the person or business that owes the liability. An 'Investor' is someone who invests money into a business, typically expecting returns.

Match the correct term to the definition: Since a 'Creditor' is the party to whom a liability is owed, this is the correct answer.

Conclude that the term for a person or business to whom a liability is owed is 'Creditor'.