Question

Liabilities can be best described as:A. The amount of expenses over the past year.B. The amount expected to be distributed to stockholders.C. The amount owed to creditors.D. The amount of services provided to customers during the year.

Answer 1

Answer: Option C

Explanation: In simple words, liability refers to the obligations that is to be fulfilled in the future or in the current period. It is the amount of sacrifice of resource that an individual or firm have to do due to some past transactions or events.

The amount owed to creditors is an obligation to pay him in the future. This might have arise due to purchase of something on credit from him.

Thus, the correct option is C.

Answer 2

Answer:

C. The amount owed to creditors

Explanation:

In general, Liabilities are obligations or something that the company owes someone else other than the owners.

In Business, Liabilities are the legal financial debts or obligations that arise because of the operations of the business.

Keyterms: Owed, Creditors, Obligations, liabilities