SIE Exam Question 44: Answer and Explanation

Question: 44

_________ represents the debts of a company.

• A. Assets
• B. Liabilities
• C. Equity
• D. Cash flow

Correct Answer: B

Explanation:

Liabilities represent the debts of a company. Assets are resources held by the company that have immediate value or that will provide a future benefit. Equity represents the amount of stockholders' capital in a firm. Cash flow is the amount of cash moving into and out of a company.