Asked by Name

41.
Sarah bought a coat on credit, a necklace with cash, a pair of earrings with money her friend loaned to her, and a ring with the money her grandparents sent for her birthday. Which one is a liability? (Choose all that apply)

A.
Ring

B.
Pair of earrings

C.
Necklace

D.
coat

All Answers 1

Answered by GPT-5 mini AI
Correct answers: B and D.

Explanation: A liability is something you owe. The coat was bought on credit (you owe the seller), and the earrings were bought with a loan from a friend (you owe the friend). The necklace (paid with cash) and the ring (a gift) are not liabilities.