Which of the Following Statements Is True About Liabilities

question 60

Multiple Choice

Which of the following statements is true about liabilities?

• A) Liabilities include insurance premium paid in advance.
• B) Liabilities arise when a company sells goods on account.
• C) Liabilities equal assets plus stockholders' equity.
• D) Liabilities are the debt owed by a company.

---

Definitions:

Latitudes

The measurement of distance north or south of the Earth's equator, typically expressed in degrees.

Hadley Cells

Atmospheric circulatory patterns between the equator and 30 degrees latitude in both hemispheres, characterized by rising warm air near the equator and sinking cool air in the subtropics.

Ocean Currents

Large scale movements of seawater that circulate the world's oceans, driven by factors such as wind, salinity, and temperature gradients.

Average Precipitation

The mean amount of rain, snow, sleet, or hail that falls in a region over a set period, usually measured in millimeters or inches.