An Obligation to Make Future Payment Is

question 7

Multiple Choice

An obligation to make future payment is

• A)Debt refinancing.
• B)Debt service.
• C)A liability.
• D)An asset.

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Definitions:

Supplies

Items used in the daily operations of a business, such as office or cleaning supplies, that are essential but not directly tied to the production of goods.

Cash

A company's liquid assets that are available for immediate use for transactions, including currency and demand deposits.

Basic Accounting Equation

Assets = Liabilities + Owner’s Equity.

Electronic Equipment

Electronic equipment encompasses devices or systems that use electrical power to perform a wide range of functions, including computing, communication, and entertainment.