According to FASB Concept Statement No.6,Elements of Financial Statements,companies routinely incur liabilities to acquire funds,goods,and services they need to operate or expand their business.Which of the following is an example of this?

Question

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Both A and B are examples of incurring liabilities to acquire funds and goods needed to operate or expand the business. Borrowing money creates a liability to repay the loan, while buying assets on credit creates a liability to pay for them. Choice C is incorrect because planning the knowledge, time, and skill of employees does not create a liability but rather an expense. Choice D is incorrect because using company-owned assets does not create a liability unless there is an agreement in place to pay for their use. Choice E is incorrect because acquiring assets with a trade-in with cash does not create a liability, but rather it involves an exchange of assets.