__________ are the amounts which are owned to other entities:

In accounting, liabilities are defined as a company's financial debts or obligations that arise during the course of its business operations. They represent amounts owed to other entities (creditors) and are settled over time through the transfer of economic benefits, including money, goods, or services. Liabilities are a critical component of the fundamental accounting equation: Assets = Liabilities + Equity. Common examples include accounts payable, loans, and accrued expenses.

A. Supplies: These are current assets, representing items a company owns and will use in its near-term operations, not amounts it owes to others.
B. Expenses: These are the costs incurred to generate revenue. While an unpaid expense creates a liability, the term "expense" itself refers to the cost, not the obligation.
C. Assets: These are economic resources owned by the entity with future economic value, which is the opposite of liabilities (amounts owed).

1. ACFE. (2023). Fraud Examiners Manual

International Edition. Section 1

"Financial Transactions and Fraud Schemes

" Subsection "Accounting Concepts." The manual defines liabilities as obligations to transfer assets or provide services to other entities in the future as a result of past transactions.

2. Franklin

M.

Graybeal

P.

& Cooper

D. (2020). Principles of Accounting

Volume 1: Financial Accounting. OpenStax

Rice University. Chapter 2

Section 2.1

"Describe the Fundamental Accounting Equation and Define Its Components." This text states

"Liabilities are a company’s debts or obligations that are owed to other entities."

3. Financial Accounting Standards Board (FASB). (1985). Statement of Financial Accounting Concepts No. 6

Elements of Financial Statements. Paragraph 35. This foundational document defines liabilities as "probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events."