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

Debts owed by a business are referred to as:

Assets

Liabilities

Revenue

Equity

Previous problemNext problem

Verified step by step guidance

Understand the concept of liabilities: In financial accounting, liabilities represent debts or obligations that a business owes to external parties, such as loans, accounts payable, or accrued expenses.

Differentiate liabilities from other financial elements: Assets are resources owned by the business, revenue is income earned from operations, and equity represents the owner's claim on the business after liabilities are subtracted from assets.

Review the definition of liabilities: Liabilities are typically classified as current (due within one year) or non-current (due after one year). Examples include accounts payable, loans payable, and accrued expenses.

Analyze the question: The term 'debts owed by a business' directly aligns with the definition of liabilities, as they represent amounts the business is obligated to pay.

Confirm the correct answer: Based on the explanation above, the correct answer to the question is 'Liabilities,' as it matches the definition of debts owed by a business.