Define liabilities.

• A. Amounts owed that require payments from current or future resources.
• B. Assets that generate revenue.
• C. Net position after deductions.
• D. Budgetary resources available.

Answer: (A)

Liabilities are present obligations to pay or provide resources in the future. They arise from past events and require an outflow of assets or other resources to settle. In practice, this means amounts owed that must be paid using current or future resources, such as money owed to suppliers or borrowings. The other options describe assets that generate revenue, the net position after deductions, or budgetary resources available, none of which define an obligation to pay in the future.