Liabilities are
A) any accounts having credit balances after closing entries are made.
B) deferred credits that are recognized and measured in conformity with generally accepted accounting principles.
C) obligations to transfer ownership shares to other entities in the future.
D) obligations arising from past transactions and payable in assets or services in the future.

Question

Quizplus · Accepted Answer

Liabilities are obligations that arise from past transactions and are payable in assets or services in the future. Choices A and B are not accurate definitions of liabilities, and choice C refers to transfer of ownership shares, which is not necessarily a liability.

Liabilities Are