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Liabilities Are Reported on The: A. Income Statement. B. Statement of Owner's Equity. C. Statement of Owner's Equity and the Income

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

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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.