Liabilities are:
A)insider claims to the business's assets.
B)outsider claims to the business's assets.
C)economic resources of a business.
D)increases in owner's equity earned by delivering goods or services.

Question

Quizplus · Accepted Answer

Liabilities are considered outsider claims to the business's assets because they represent obligations the business has to external parties, such as loans from banks, accounts payable, or any other form of debt owed to entities outside of the business itself.

Liabilities Are