Liabilities are best defined as:
A)Amounts the company expects to collect in the future from customers.
B)Debts or obligations the company owes resulting from past transactions.
C)The amounts that owners have invested in the business.
D)Payments to stockholders.

Question

Quizplus · Accepted Answer

Liabilities are debts or obligations that the company owes resulting from past transactions, such as loans or accounts payable. They are not amounts the company expects to collect (answer A), amounts invested by owners (answer C), or payments to stockholders (answer D).

Liabilities Are Best Defined As