Question

Liabilities are defined as: a) Resources owed by an entity as a result of past transactions. b) Resources owned by an entity as a result of past transactions. c) Selling products and services to customers in the current period. d) Costs of running the business in the current period.

Answer 1

Option A

Step-by-step explanation:

In simple words, A liability refers to an agreement among one entity and another which has not yet been fulfilled or accounted for. A liability is anything that a individual or firm owes due to any past transaction, typically a amount of money. Over period, liabilities become settled by shifting economic advantages involving property, products or services.