A debt that a business owes to an outside party is called:
A)an asset.
B)a liability.
C)stockholders' equity.
D)revenue.

Question

Quizplus · Accepted Answer

A liability is a debt that a business owes to an outside party, such as a lender or supplier. An asset is something of value that a business owns, such as inventory or equipment. Stockholders' equity is the portion of a company's assets that are owned by its shareholders. Revenue is the income that a business earns from its operations.

A Debt That a Business Owes to an Outside Party