Final answer:
Liabilities are listed on the right side of the balance sheet, which includes obligations such as loans and accounts payable.
Step-by-step explanation:
The term balance sheet refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time. Balance sheets provide the basis for computing rates of return for investors and evaluating a company's capital structure. Liabilities appear on the right side of the balance sheet. A balance sheet is a financial statement that provides a snapshot of a company's financial position at a specific point in time.
It is typically divided into two sides: the left side lists the company's assets, which are the economic resources owned by the business, while the right side lists the company's liabilities and equity, which represent the claims against those resources. Liabilities are obligations that the company owes to external parties, and can include loans, mortgages, and accounts payable, among others.