Liabilities of a Company Are Owed to

question 115

Multiple Choice

Liabilities of a company are owed to

• A) debtors.
• B) owners.
• C) creditors.
• D) stockholders.

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Definitions:

Operating Leases

Agreements that allow one to use an asset for a specified period without owning it, typically with lower monthly payments than a finance lease.

Zero Cash Balances

A company's financial situation where the cash account balance reaches zero, often intentionally managed through cash sweep accounts to optimize liquidity.

Debt Capital

Funds borrowed by an entity that must be repaid over time, typically with interest.

Tight Economies

Economies characterized by limited credit availability, slow economic growth, or high unemployment rates.