An example of a liability is:

Liabilities represent obligations that a company owes to external parties, and accounts payable is a prime example of this concept. It refers to the amounts a business owes to suppliers or vendors for goods and services that have been received but not yet paid for. This obligation is expected to be settled in the near term, typically within one year, making it a current liability.

Understanding liabilities is crucial because they play a key role in assessing a company's financial health. They affect cash flow, financial ratios, and overall business operations. In contrast, cash is an asset, which represents liquidity; inventory is also an asset, representing the goods available for sale; and real estate is a long-term asset that can appreciate and is used for business operations. Thus, accounts payable stands out as the only choice that accurately reflects a liability on a balance sheet.