Pick the correct statement. A liability is:

Question

CHOOSE 1
Something you buy that decreases in value but generates income
Something you buy that decreases in value and costs you money every month
A loan used for the sole purpose of buying an asset
An obligation or debt that you have to pay or owe to someone
There are no correct statements. All statements are incorrect

Answer 1

An obligation or debt that you have to pay or owe to someone