money owed from an outsider is an (a) assets (b) liability (c) expense (d) capital

Question

Answer

money owed to a outsider is a liablity but money owed from a outsider is a asset

Answer

Liability:

Money owed from an outsider is considered a liability in accounting terms.

A liability is defined as an obligation that a company or individual owes to another party and is expected to be settled in the future by transferring economic resources or providing services.

Examples of Liabilities:

Accounts payable

Loans payable

Accrued expenses

Taxes payable

Deferred revenues

Why is Money Owed a Liability?

Money owed by an outsider to a company is a liability because it represents an obligation or debt that the company owes to the outsider.

The outsider who owes the money is considered a creditor or lender, while the company is considered the debtor or borrower.

The company is expected to pay back the money owed, either by transferring economic resources or providing services, within a specified time frame.

Impact on Financial Statements:

When a liability is recorded, it has an impact on a company's financial statements.

It increases the company's total liabilities and decreases its net worth or equity.

Liabilities are reported on the balance sheet, which is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Liabilities are also used in calculating a company's debt-to-equity ratio, which is a measure of how much debt a company has in relation to its equity.

Conclusion:

Money owed from an outsider is considered a liability because it represents an obligation or debt that a company owes.

Liabilities are reported on a company's balance sheet and have an impact on its financial statements.

Understanding liabilities is important for financial analysis and decision-making.

Answer

When we have to receive something from another person, it becomes an asset for the receiving person. Liability will be when something is due to be paid to an outsider. Expense is the outflow of economic resources to earn the specified revenue. Capital is the sum provided by the owner for investment purposes in a business.this answer is just a copy paste

Answer

asset

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Liability

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liability

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liability

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money owed 'from outsider' and not 'to outsider', hence its an asset. Not a liablity

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lability because it is owed not owned.

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liability

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it's an asset

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it's a liability to us as we have to return that amount to them .

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Money owed *from an outsider* is an asset because you have entitle to receive.So no doubt it is an ASSET.

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it's an asset as the outsiders have to return that amount to us.

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my math is so weak

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d option...that is capital

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liability

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Money owned from an outsider is an

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Liability

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It's assets as the outside is liable to pay us .he our debtor so option 'A'

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liability

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Liability..We ought to pay them back.We're simply liable to them.

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Liability

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liability

Answer

Optionb

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