Liabilities

Amounts owed to other entities

Question

__________ are the amounts which are owned to other entities:

Answers

Explanations

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A. B. C. D.

D

The correct answer is D. Liabilities.

Liabilities are the amounts owed by a company to other entities, such as suppliers, lenders, or employees. They represent an obligation to pay a certain amount of money or provide goods or services to someone else.

Liabilities can be either current or long-term. Current liabilities are obligations that are expected to be paid within one year, while long-term liabilities are obligations that are due after one year. Examples of current liabilities include accounts payable, salaries payable, and taxes payable. Examples of long-term liabilities include bank loans, mortgages, and bonds payable.

In contrast, supplies and expenses are not amounts owed to other entities. Supplies are materials or goods that a company uses in its operations, such as office supplies, raw materials, or inventory. Expenses are costs incurred by a company in its operations, such as salaries, rent, utilities, or marketing expenses.

Assets, on the other hand, represent the resources that a company owns and can use to generate revenue, such as cash, accounts receivable, inventory, equipment, or property. While assets can be used to pay liabilities, they are not liabilities themselves.