ECONOMICS
BUDGETING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A monthly plan for how you are going to save and spend your income
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Anything you owe; a debt
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Anything of value that is owned by an individual
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The cost of goods or expenses
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Detailed explanation-1: -A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Detailed explanation-2: -A liability is a debt owed by a company that requires the entity to give up an economic benefit (cash, assets, etc.) to settle past transactions or events.
Detailed explanation-3: -Liabilities are any debts your company has, whether it’s bank loans, mortgages, unpaid bills, IOUs, or any other sum of money that you owe someone else. If you’ve promised to pay someone a sum of money in the future and haven’t paid them yet, that’s a liability.
Detailed explanation-4: -The main difference between liability and debt is that liabilities encompass all of one’s financial obligations, while debt is only those obligations associated with outstanding loans. Thus, debt is a subset of liabilities.
Detailed explanation-5: -Liabilities (aka money owed or debts) represent everything a company owes at a given time. Liabilities might include loans payable, employee wages, accounts payable, interest payable, etc.