When Companies Owe Money to Creditors, Suppliers, and Others, These

question 102

Multiple Choice

When companies owe money to creditors, suppliers, and others, these outstanding amounts are recorded on the balance sheet as ________.

• A) contra-assets
• B) liabilities
• C) owners' equity
• D) expenses

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Definitions:

Experimental

Pertaining to a method of testing hypotheses through controlled procedures to determine cause and effect relationships.

Personality Trait

Enduring patterns of thoughts, feelings, and behaviors that distinguish individuals from one another.

Nominal Scale

A scale of measurement used in research that involves categorizing variables into non-numerical categories without a defined order or hierarchy.

Ordinal

Pertaining to a category of data or scale type that expresses a sequential order without indicating the exact difference between the levels.