Question

Liabilities are shown on the:__________a. statement of changes in stockholders' equity.b. balance sheet.c. income statement.d. statement of cash flows.

Answer 1

. balance sheet.

Step-by-step explanation:

Liabilities are debts a business or an individual owe to other parties. It is money owed to creditors. Liabilities are financial obligations that an enterprise incur in the course of doing business. The obligations or debts have to been paid; hence they should be appropriately indicated in the financial records.

Liabilities are recorded in the balance sheet statement. A balance sheet indicates the financial status of a company by showing its assets and how they are financed. The balance sheet is prepared by followed the equation of assets equals liabilities plus equity. It lists the assets on one right side, while liabilities and equity appear on the left.