Liabilities Are

question 82

Multiple Choice

Liabilities are

• A)sometimes credit and other times debit balances.
• B)deferred amounts which will be recognized on the balance sheet when the actual due date arrives.
• C)obligations arising from past transactions and payable in assets or services in the future.
• D)obligations to transfer ownership of one company to other entities.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Financial Performance

The measure of an organization's profitability, revenue, expenses, and overall financial health over a specific period.

Legal Compliance

Adherence to laws, regulations, standards, and ethical practices applicable to an organization's operations.

Return on Sales

A financial ratio that calculates the amount of profit generated as a percentage of total sales, indicating the efficiency of a company's operations.