ECONOMICS
BUDGETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A(n) ____ is a financial obligation that must be paid such as a home or car loan.
|
|
asset
|
|
|
expense
|
|
|
income
|
|
|
liability
|
Explanation:
Detailed explanation-1: -Debt-A financial obligation owed to another.
Detailed explanation-2: -Liabilities can be classified into three categories: current, non-current and contingent.
Detailed explanation-3: -Liability refers to a financial obligation of a company. This means that it has to pay a debt to another company or a private person. A classic example is a bank loan that must be repaid to the bank in monthly instalments.
Detailed explanation-4: -Individual or household liabilities For most individuals and households, liabilities include taxes, rent or mortgage payments, loan interest, and principal.
There is 1 question to complete.