The debt owed by a business to an outside individual or organization is called its _____.

Question

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Liabilities represent the debt owed by a business to outsiders, which can include loans, accounts payable, mortgages, and any other financial obligations outside of the business's equity or ownership interests. Equity, on the other hand, refers to the owner's share in the business. Assets are what the business owns, and variable outflows relate to expenses that can vary in amount.

The Debt Owed by a Business to an Outside Individual