Which One of the Following Events Involves a Liability for a Business

question 17

Multiple Choice

Which one of the following events involves a liability for a business?

• A)Loans to be repaid to banks
• B)Inventories purchased for cash
• C)Amounts invested by the owners
• D)Stock sold to the general public

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Definitions:

Earning Revenue

The process of generating income through the sale of goods, provision of services, or other business activities.

Expenses

The costs incurred by a business in the process of earning revenue.

Managerial Accountants

Professionals who focus on providing the financial information necessary for management to make decisions regarding the planning, direction, and control of an organization.

Tax Reports

Documents prepared for the government that detail an entity's income, expenses, and other tax-related information for fiscal purposes.