What type of liabilities are described as amounts owed by a business?

The correct answer, which identifies liabilities as amounts owed by a business, is payables. In accounting, "payables" refer specifically to obligation amounts that a company must pay to others, often as part of its normal business operations. This includes things like accounts payable, which represent short-term debts to suppliers for goods or services received but not yet paid for.

This term captures the essence of liabilities since it relates directly to the future outflows of resources that the business is required to make. Payables are a crucial part of a company's balance sheet as they indicate the liabilities and the amounts due, thus allowing users of the financial statements to understand the company's financial obligations.

In contrast, assets represent resources owned by the company and receivables indicate amounts that the company is owed by others, signifying potential future inflows. Revenue represents the income generated from normal business operations but does not reflect amounts owed by the business. Understanding these distinctions is essential in interpreting financial statements and assessing a company's financial health.