Which of the following best describes a liability?
A) Liabilities are a form of share capital.
B) Liabilities are future economic benefits to which a company is entitled.
C) Liabilities are accounts receivable of the company.
D) Liabilities are economic obligations to creditors to be paid at some future date by the company.

Question

Quizplus · Accepted Answer

Liabilities are economic obligations that a company owes to creditors or other parties, which are to be paid off in the future. This includes debts, loans, or any other financial obligations that the company has committed to.

Which of the Following Best Describes a Liability