The claims of a business's creditors are called
A) assets.
B) liabilities.
C) equity.
D) revenue.

Question

Quizplus · Accepted Answer

The claims of a business's creditors are called liabilities, as creditors are owed a certain amount of money by the business. Assets are what the business owns, equity refers to the amount of money invested in the business by its owners, and revenue is the income earned by the business from its operations.

The Claims of a Business's Creditors Are Called