Liabilities are defined as "the residual interest in the assets of an entity that remains after deducting its equity".

Question

Quizplus · Accepted Answer

Liabilities are defined as the company's obligations or debts that arise during the course of its business operations, not the residual interest in assets after deducting equity. Equity represents the residual interest in the assets of an entity after deducting liabilities.

Liabilities Are Defined as "The Residual Interest in the Assets