Multiple choice

The money that a business owes to creditors.

  1. Liabilities

  2. Nonprofit Organization

  3. Owner’s Equity

  4. Patent

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Liabilities represent the financial obligations or debts that a business owes to external parties. Assets are what a business owns, while owner's equity represents the owner's claim on assets after liabilities are paid.