A(n) ________ is a debt owed by a firm to an outside organization or individual.
A) liability
B) owners' equity
C) debit
D) asset
E) credit

Question

Quizplus · Accepted Answer

A liability is a debt owed by a firm to an outside organization or individual. Owners' equity represents the portion of the company that belongs to the owners, not debt owed to outside parties. Debit and credit are terms used in accounting to record transactions. An asset is something of value that a company owns, not a debt owed.

A(n) ________ Is a Debt Owed by a Firm to an Outside