Questions: Which of the following statements describes liabilities? a.) Lauren can claim ownership of the restaurant equipment and delivery vehicles, totaling 28,000. b.) The profits of all three of Karen's pizzerias total 162,000. c.) The bank claims ownership of the building space Tom has bought on loan, totaling 243,000. d.) Barry spends 38,000 annually on advertising to increase profits.

The answer is c.) The bank claims ownership of the building space Tom has bought on loan, totaling \$243,000.

This statement describes assets, not liabilities. Assets are resources owned by a person or company that have economic value.

This statement describes income or revenue, not liabilities. Profits are the financial gains after subtracting expenses from revenue.

This statement describes a liability. Liabilities are obligations that a company or individual owes to others, often in the form of loans or debts. In this case, the bank's claim on the building space represents a liability for Tom.

This statement describes an expense, not a liability. Expenses are the costs incurred in the process of generating revenue.