An Obligation of a Business That Represents the Claims of Others

question 222

Multiple Choice

An obligation of a business that represents the claims of others against the assets of the business is called a(n)

• A) asset
• B) expense
• C) revenue
• D) equity
• E) liability

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Definitions:

Cost-Benefit Analysts

Professionals who assess the economic pros and cons of different projects or decisions to determine their financial viability.

Public Projects

Initiatives funded and executed by the government aimed at benefiting the general public, such as infrastructure development and educational programs.

Basic Research

Fundamental scientific research aimed at increasing the understanding of fundamental principles, without immediate commercial objectives.

Excludable

A characteristic of a good or service whereby it is possible to prevent non-payers from consuming it.