33.5k views
2 votes
A legal obligation that involves repaying a debt is called a _____.

A.liability
B.profit
C.property right

2 Answers

5 votes
A legal obligation that involves repaying a debt is called a LIABILITY.

You are liable to pay off all the debts you have incurred. Payment may be done through monetary compensation or physical performance.
User Mihai Stan
by
8.2k points
5 votes

Answer;

-Liability

A legal obligation that involves repaying a debt is called a Liability.

Step-by-step explanation;

-To be liable for something means to be legally responsible for something, as in he lost his case and was found liable for damages. A liability is a legal obligation, as in he denied any liability for the damage. A company’s liabilities are its debts, as in the business has liabilities of €2 million.

-A liability is an obligation and it is reported on a company's balance sheet. A common example of a liability is accounts payable. Accounts payable arise when a company purchases goods or services on credit from a supplier. When the company pays the supplier, the company's accounts payable is reduced.

User RBR
by
8.4k points

Related questions

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories