Which of the following is an example of a liability?

• A. Revenues
• B. Assets
• C. Equity
• D. Liabilities

Answer: (D)

A liability is an obligation to transfer assets or provide services in the future, arising from past events. It’s something the company must settle, like accounts payable or loans payable. Revenues aren’t obligations—they’re income that increases equity. Assets are resources the company owns, and equity is the owners’ claim after liabilities. So the option that describes an obligation to future sacrifice fits as a liability.