A Debt That a Business Owes to an Outside Party

question 135

Multiple Choice

A debt that a business owes to an outside party is called:

• A)an asset.
• B)a liability.
• C)stockholders' equity.
• D)revenue.

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Definitions:

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like flour, bread, and pasta.

Cattle

Large domesticated bovines that are raised for their meat (beef), milk, or as draft animals.

Opportunity Cost

Losing out on potential advantages from multiple alternatives by committing to one.

Crude Oil

A naturally formed, crude oil substance made up of hydrocarbon accumulations and various organic compounds.