Which of the following increases liabilities but not assets?

Social Studies

2 answers:

arlik [135]3 years ago

7 0

B would be the answer

4vir4ik [10]3 years ago

6 0

The correct answer is B. Taking out loan to go on vacation.

Liability is termed as future sacrifices of benefits which are obliged to other entities. There are characteristics which explains what is liability.

For example, A type of borrowing from banks or from persons to improve personal income and which is being paid within the given period of time.

Liability can be based on constructive obligations or equitable obligations.

We can say that we get the asset when liability is being added to owners equity.

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