Question

An example of a liability on your financial statement would be:

Select one:
a. any earned tips
b. money you owe on a credit card
c. last week's income
d. restaurant receipts

Answer 1

A liability on your financial statement refers to something that you owe. An example of a liability would be money you owe on a credit card.

Step-by-step explanation:

A liability on your financial statement refers to something that you owe.

An example of a liability would be money you owe on a credit card. When you use a credit card to make a purchase, you are essentially borrowing money from the credit card company.

The amount you owe on the credit card represents a liability because it is a debt that you are obligated to pay back.