What Type of Liability Means That Business Damages And/or Debts

question 2

Multiple Choice

What type of liability means that business damages and/or debts can also be attached to the personal assets of the owners?

• A) informal liability
• B) limited liability
• C) unlimited liability
• D) funding liability

---

Definitions:

Balance Sheet

A financial statement that presents a company's financial position, including assets, liabilities, and equity, at a specific point in time.

Closing Process

The process of transferring the balances of temporary accounts to permanent accounts at the end of the accounting period.

Balance Sheet Accounts

Accounts displayed on the balance sheet, such as assets, liabilities, and equity, reflecting a company's financial standing at a specific point in time.

Income Statement Accounts

Accounts found on the income statement, including revenues, expenses, gains, and losses, used to calculate net profit or loss for a period.