Liabilities Are Reported on the

question 73

Multiple Choice

Liabilities are reported on the

• A) income statement
• B) retained earnings statement
• C) statement of cash flows
• D) balance sheet

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Definitions:

Liability

A company's legal debts or obligations that arise during the course of business operations.

Asset

An economic resource owned or controlled by a person or entity, which is expected to provide future benefits.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the owners' share.

Current Assets

Current assets are all assets that a company expects to convert to cash or use within one year, such as inventory, accounts receivable, and cash.