Liabilities represent:

Question

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Liabilities represent amounts owed to third parties, such as creditors, suppliers, employees, or lenders. They are obligations or debts that the company owes to others, and they are usually settled by paying cash, providing goods, or rendering services. Liabilities are different from assets, which represent economic resources owned or controlled by the business, and from equity or net worth, which represents the residual interest of the owner or shareholders in the assets of the business after deducting the liabilities.

Liabilities Represent