Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 46 - No. 41)

In the accounting equation, what does 'liabilities' represent?
The total value of everything a business owns.
The owner's investment in the business.
The debts and obligations of a business.
The difference between assets and equity.

Explanation

Liabilities represent what the business owes to others.

Comments (0)

Advertisement