Question

Liabilities are:___________ a) deferred credits that are recognized and measured in conformity with generally accepted accounting principles. b) any accounts having credit balances after closing entries are made. c) obligations to transfer ownership shares to other entities in the future. d) obligations arising from past transactions and payable in assets or services in the future.

Answer 1

Answer: d) obligations arising from past transactions and payable in assets or services in the future.

Explanation:

Liabilities are financial obligations meant to be catered for by an organization in the running of its business.