Liabilities Are

question 161

Multiple Choice

Liabilities are:

• A)insider claims to the business's assets.
• B)outsider claims to the business's assets.
• C)economic resources of a business.
• D)increases in owner's equity earned by delivering goods or services.

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Definitions:

Hand-Knit Sweaters

Apparel created by interlocking yarn with knitting needles, entirely crafted by hand.

Enforceable Oral Contract

A verbal agreement that is legally binding and can be enforced in a court of law, under certain conditions.

Assets

Resources with economic value owned by an individual, company, or country, expected to provide future benefits.

Standard Construction Rule

In legal interpretation, this rule dictates that ambiguous contract terms should be construed against the drafter.