Amounts owed by a business enterprise to external parties are described as:
A) assets.
B) liabilities.
C) equities.
D) revenue.

Question

Quizplus · Accepted Answer

Liabilities are the amounts owed by a business enterprise to external parties, such as creditors, suppliers, and lenders. Assets, on the other hand, are resources owned by the business, while equities represent the residual interest of the owners in the assets after all liabilities have been paid. Revenue is income earned by the business from its operations.

Amounts Owed by a Business Enterprise to External Parties Are