Question

Amount which the firm owes to outsiders is known as

Answer 1

A liability.... is the answer

Answer 2

Answer:

Debt is the amount owned by the firm to the outsider

Explanation:

• Debts are loans that a company owes to a third party because of an earlier transaction or loan.
• Definition: A debt is anything that a person or business owes, typically a financial liability.
• Debt is the amount owned by the firm to the outsider.
• Debt is considered as a liability

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