Accounting for IGCSE & O level - Final Statements (Section 13 - No. 27)
Which of the following best describes 'liabilities' in a statement of financial position?
What the business owns.
What the business owes to others.
The owner's investment in the business.
The value of the company's buildings and equipment.
Shpjegimi
Liabilities represent obligations of the business to external parties.