Which of the Following Best Describes a Liability? Liabilities Are

question 43

Multiple Choice

Which of the following best describes a liability? Liabilities are:

• A)a form of paid- in capital.
• B)payables of the corporation.
• C)economic obligations to owners to be paid at some future date by the corporation.
• D)future economic benefits to which a company is entitled.

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Definitions:

Marketing Activities

Actions or strategies that companies use to promote and sell their products or services to the target audience.

Financial Viability

The ability of an entity to generate sufficient income to meet its operational needs and financial obligations, ensuring long-term sustainability.

Contract Clause

A specific provision or section within a contract that outlines a particular requirement, right, or duty.

Unreasonable Financial Hardship

A situation where an individual's financial obligations are so burdensome that they cannot meet basic living expenses.