Liabilities are the owner's claim on assets.

Name: Liabilities are the owner's claim on assets.
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Liabilities represent the debts or obligations that a company owes to creditors or other parties. They are not the owner's claim on assets; rather, they represent claims on assets by others. The owner's claim on assets is represented by equity, which is the residual interest in the assets of the entity after deducting liabilities.

Liabilities Are the Owner's Claim on Assets