Liabilities are which of the following? A. Resources B. Obligations C. Future benefits D. Expenses

The correct answer is: B. Obligations.

Liabilities are the company’s legal debts or financial obligations that arise during the course of business operations. They are settled in the future through the transfer of economic benefits, such as cash, goods, or services.

• Resources are assets that a company owns and controls. They are used to generate future economic benefits.
• Future benefits are the expected positive outcomes that a company expects to receive from its resources.
• Expenses are the costs that a company incurs in the process of generating revenue. They are recorded in the income statement and reduce the company’s net income.

Here are some examples of liabilities:

• Accounts payable: Money that a company owes to its suppliers for goods or services that have been purchased on credit.
• Notes payable: Loans that a company has borrowed from banks or other lenders.
• Accrued expenses: Expenses that have been incurred but not yet paid, such as salaries or interest.
• Income taxes payable: Taxes that a company owes on its income.
• Deferred taxes: Taxes that a company has paid in advance or that will be paid in the future.

Liabilities are important because they represent the company’s financial commitments to its creditors. They must be carefully managed to ensure that the company is able to meet its obligations in a timely manner.