A List of Liabilities of an Existing Business Would Include

question 28

Multiple Choice

A list of liabilities of an existing business would include ______.

• A) a list of accounts receivable
• B) an inventory of products and materials
• C) liens by creditors against any assets
• D) a list of accounts payable

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Definitions:

Allocated Fixed Costs

Fixed costs that are assigned to a specific department, project, or segment of a business.

Discontinuing

The process of ending the production and sales of a product line, business segment, or an entire business.

Differential Effect

The financial impact of choosing one option over another in decision-making processes.

Residual Value

The estimated value that an asset will have at the end of its useful life.