Question
Liabilities are reported on the: A. income statement. B. statement of owner's equity. C. statement of owner's equity and the income statement. D. balance sheet.
Solution
4.2
(274 Votes)
Alondra
Master ยท Tutor for 5 years
Answer
D. balance sheet.Liabilities represent obligations a business owes to others. They are a key component of the accounting equation (Assets = Liabilities + Equity) and are reported on the balance sheet, which shows the financial position of a business at a specific point in time.