The claims of creditors against the assets of a business are
A) expenses.
B) revenues.
C) liabilities.
D) assets.

Question

Quizplus · Accepted Answer

The claims of creditors represent debts owed by the business, and therefore are considered liabilities. Liabilities are amounts owed to individuals or entities outside of the business, and are shown on the balance sheet as they represent future payments that the business must make.

The Claims of Creditors Against the Assets of a Business