Liabilities
A) are future economic benefits.
B) are existing debts and obligations.
C) possess service potential.
D) are things of value used by the business in its operation.

Question

Quizplus · Accepted Answer

Liabilities are existing debts and obligations that a business owes to other parties. They represent a claim on the assets of the business and must be paid off in the future. Liabilities can arise from borrowing money, purchasing goods or services on credit, or from legal obligations such as taxes or lawsuits. They are separate from assets which are things of value owned by the business and have economic benefits, and from equity which represents the residual interest of the owners in the business.