please explain the answer as to why you chose it please Conn

please explain the answer as to why you chose it please.

Connect IntroF × html CSecurel Saved Quiz 1 6 The claims of a business\'s creditors are called 1 Mutiple Choice 00-3304 assets. liabilities equity revenue Prev 1 of 11 Next MacBook Air

Solution

They are called liabilities because the company owe them money. Company need to fulfill its agreement with the creditors to pay them back and in financial accounting term it\'s known as liabilities.