Which one of the following events involves a liability for a business?
A)Loans to be repaid to banks
B)Inventories purchased for cash
C)Amounts invested by the owners
D)Stock sold to the general public

Question

Quizplus · Accepted Answer

Loans to be repaid to banks represent a liability for a business as they are obligated to repay the borrowed amount with interest. Inventories purchased for cash, amounts invested by the owners, and stock sold to the general public do not represent liabilities for the business.

Which One of the Following Events Involves a Liability for a Business