Asked by Mohammed Yasser on Apr 24, 2024
Verified
Debts owed by a business are referred to as
A) accounts receivable
B) expenses
C) owner's equity
D) liabilities
Liabilities
Financial obligations owed by a business to others, such as loans, accounts payable, and mortgages, which must be paid in the future.
Debts
Money that is owed or due to another individual or entity.
- Comprehend the basic principles of asset and liability management.
Verified Answer
WA
Wisdom Anani7 days ago
Final Answer :
D
Explanation :
Debts owed by a business are referred to as liabilities. Accounts receivable refers to money owed to a business by its customers, expenses refer to costs incurred by a business to generate revenue, and owner's equity refers to the owner's investment or stake in the business.
Learning Objectives
- Comprehend the basic principles of asset and liability management.