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

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is another term commonly used to describe a company's liabilities?

Revenues

Obligations

Equity

Assets

Previous problemNext problem

Verified step by step guidance

Understand the concept of liabilities: Liabilities represent amounts a company owes to external parties, such as creditors, suppliers, or lenders. They are obligations that must be settled in the future, typically through the transfer of money, goods, or services.

Review the term 'obligations': In financial accounting, liabilities are often referred to as obligations because they represent the company's responsibility to fulfill certain commitments or debts.

Differentiate liabilities from other financial terms: Revenues refer to income earned from business operations, equity represents the owners' claim on the company's assets, and assets are resources owned by the company. None of these terms describe liabilities.

Recognize the correct terminology: The term 'obligations' is commonly used interchangeably with liabilities because it emphasizes the company's duty to settle debts or fulfill commitments.

Apply this understanding to the question: Based on the explanation, the correct answer to the question is 'Obligations,' as it is another term commonly used to describe a company's liabilities.