BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue
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An asset
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A liability
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Owner’s equity
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Detailed explanation-1: -Liabilities are the debts that a business owes to third-party creditors. Notes payable and bank debt could be part of accounts payable. Businesses take on debt to grow faster. The balance between a company’s debts and its assets makes it stable.
Detailed explanation-2: -Liabilities include everything your business owes, presently and in the future. These include loans, legal debts or other obligations that arise in the course of business operations.
Detailed explanation-3: -Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses. Liabilities can be contrasted with assets. Liabilities refer to things that you owe or have borrowed; assets are things that you own or are owed.