Question

Liabilities are a. any accounts having credit balances after closing entries are made. b. deferred credits that are recognized and measured in conformity with generally accepted accounting principles. c. obligations to transfer ownership shares to other entities in the future. d. obligations arising from past transactions and payable in assets or services in the future.

Answer 1

The correct answer is d. obligations arising from past transactions and payable in assets or services in the future.

Step-by-step explanation:

The liability, from an accounting point of view, represents the debts and obligations with which a company finances its activity and serves to pay its asset. It is also known by the name of financial structure, financial capital, origin of resources and source of foreign financing.

They are debts that we have in the present but that we have contracted in the past. An example of an obligation is a loan with a financial institution. When acquiring that loan, we are obliged to pay the principal and interest to the provider (documented in an invoice or in a bill of exchange).