An obligation of a business that represents the claims of others against the assets of the business is called a(n)
A) asset
B) expense
C) revenue
D) equity
E) liability

Question

Quizplus · Accepted Answer

An obligation of a business that represents the claims of others against the assets of the business is called a liability. This means that the business owes something to someone else, whether it be money, goods or services. Examples of liabilities include accounts payable, long-term loans, and accrued expenses.

An Obligation of a Business That Represents the Claims of Others