Evelyn had to buy a lot of equipment to open her beauty salon. She bought most of it on credit. The amounts of money that she owes her creditors are called

Question

Quizplus · Accepted Answer

The amounts of money that Evelyn owes to her creditors are considered liabilities, as they represent debts that she has to pay off in the future. Assets are things she owns that have value, investments are assets purchased with the hope of generating income or increasing in value, capital refers to the financial resources she has invested in her business, and equity refers to the residual value of her business assets after liabilities are deducted.

Evelyn Had to Buy a Lot of Equipment to Open