226k views
5 votes
A legal obligation that involves repaying a debt is called a

1 Answer

4 votes
It's called a Liability.

The legal obligation will be much stronger if you put it under writing. Liabiity usually recorrded on the right side of Company's Ledger. The ammount of Liability that a company has must be identical to the ammount that you get when you cut the total ammountt of owner's ewuity from the company's asset
User Phyllis Diller
by
8.0k points