A debt that a business owes is called ________.
A) an asset
B) a liability
C) owner's equity
D) revenue

Question

Quizplus · Accepted Answer

A debt is a financial obligation or liability that a business owes to a creditor. It represents an amount owed and is payable in the future. An asset is something that a business owns or controls that has economic value. Owner's equity represents the residual interest in the business assets after liabilities are deducted. Revenue is the income earned by a business from its regular activities.

A Debt That a Business Owes Is Called ________