The entity's economic obligations to nonowners isare) called _____.
A)owners' equity
B)liabilities
C)assets
D)retained earnings

Question

Quizplus · Accepted Answer

Liabilities are the economic obligations of an entity towards nonowners, such as creditors and lenders. Owners' equity represents the residual interest of the owners in the assets of the entity, and retained earnings are the portion of a company's profits that are kept or retained after distribution to shareholders. Assets, on the other hand, are the resources controlled by the entity that have the potential to produce economic benefits in the future.

The Entity's Economic Obligations to Nonowners Isare) Called _____