Known Liabilities

question 167

Multiple Choice

Known liabilities:

• A)Include accounts payable, notes payable, and payroll.
• B)Are obligations set by agreements, contracts, or laws.
• C)Are measurable.
• D)Are definitely determinable.
• E)All of the choices are correct.

---

Definitions:

Consumption

The use of goods and services by households, affecting economic conditions and indicating economic health through consumer spending patterns.

Income

The monetary payment received by an individual or household for their services, investments, or transfer payments.

Interest Rate

The percentage of an amount of money charged by a lender to a borrower for the use of their funds over a period of time, typically expressed as an annual percentage.

Present Value

The current worth of future cash flows discounted at an appropriate discount rate, reflecting the time value of money.