The debts of a business are considered
a. liabilities
b. assets
c. equity
d. securities
Please look those words up in a dictionary. Then tell us what you think the answer is.
Liabilities.
The debts of a business are considered liabilities. To determine this, you can refer to the basic accounting equation, which states that the assets of a business are equal to its liabilities plus equity. In simpler terms, debts represent the obligations or amounts owed by a business to its creditors.
To get this answer, you can use financial statements such as the balance sheet. The balance sheet displays the financial position of a company at a specific point in time and includes information about a company's assets, liabilities, and equity. Looking at the liability section of the balance sheet will show you the business's debts or obligations to external parties.