On the Balance Sheet,the Amounts a Corporation Owes to Various

question 134

Multiple Choice

On the balance sheet,the amounts a corporation owes to various creditors are referred to as ____.

• A) liabilities
• B) assets
• C) budgets
• D) diseconomies
• E) expenses

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Definitions:

Merchandise Inventory

This term refers to the finished goods acquired for resale by a company, forming a crucial part of its current assets on the balance sheet.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Materials Inventory

A stock of raw materials and components that are stored by a company and used in the production of its goods.

Transactions

The exchanges or transfers of goods, services, or funds that result in changes to the financial position of a business.