Which of the following indicates what a firm owes its creditors?
A) Prepaid expenses
B) Owners' equity
C) Liabilities
D) Assets

Question

Quizplus · Accepted Answer

Liabilities represent the debts and obligations a firm owes to its creditors, such as loans, accounts payable, and accrued expenses. Prepaid expenses are assets that have already been paid for but not yet consumed, owners' equity represents the residual assets of a firm after liabilities have been paid, and assets represent what a firm owns or controls.

Which of the Following Indicates What a Firm Owes Its