WAEC Commerce 1995 Question 11

Question 11

Business Finance

The total indebtedness of a business is the same as its

  1. A.liabilities
  2. B.liquid capital
  3. C.solvency
  4. D.capital employed
  5. E.working capital
Show the answer and explanation

Answer: A (liabilities)

Explanation

Everything a business owes to outsiders is its liabilities.