BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Assets
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Liabilities
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Owner’s Equity
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Expenses
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Detailed explanation-1: -Answer. => Obligations (amounts owed) are reported on the balance sheet and are referred to as . Obligations (amounts owed) are reported on the balance sheet and are referred to as liabilities.
Detailed explanation-2: -Obligations (amounts owed) are reported on the balance sheet and are referred to as. liabilities.
Detailed explanation-3: -Overview: The balance sheet-also called the Statement of Financial Position-serves as a snapshot, providing the most comprehensive picture of an organization’s financial situation. It reports on an organization’s assets (what is owned) and liabilities (what is owed).
Detailed explanation-4: -Liabilities are the legal debts a company owes to third-party creditors. They can include accounts payable, notes payable and bank debt. All businesses must take on liabilities in order to operate and grow.
Detailed explanation-5: -A company’s balance sheet, also known as a “statement of financial position, ” reveals the firm’s assets, liabilities, and owners’ equity (net worth).