Liabilities include

Liabilities include

• A. Current Assets
• B. Shareholders' Equity
• C. Revenues
• D. current liabilities and long-term liabilities

Answer: (D)

A liability is an obligation the company has from past events that will require a future outflow of resources. On the balance sheet, liabilities are split into two groups: current liabilities (due within one year or the operating cycle) and long-term or non-current liabilities (due after more than one year). The option that lists current liabilities and long-term liabilities accurately describes what liabilities comprise. Current assets, shareholders' equity, and revenues are not liabilities—they are assets, owners’ equity, and income, respectively—so they do not describe what liabilities are.

A liability is an obligation the company has from past events that will require a future outflow of resources. On the balance sheet, liabilities are split into two groups: current liabilities (due within one year or the operating cycle) and long-term or non-current liabilities (due after more than one year). The option that lists current liabilities and long-term liabilities accurately describes what liabilities comprise. Current assets, shareholders' equity, and revenues are not liabilities—they are assets, owners’ equity, and income, respectively—so they do not describe what liabilities are.