Which of the following would be classified as a liability?

Liabilities are obligations that a business owes to external parties and represent claims against the assets of the business. Money owed to suppliers fits this definition perfectly, as it reflects an amount that the business is required to pay for goods or services received but not yet paid for. This creates a financial obligation that the business must settle in the future, making it a liability on the balance sheet.

In contrast, investments made by owners refer to the equity provided by the owners of the business, which represents their stake in the company rather than an obligation to pay someone. Cash available in the business is an asset, representing the liquid resources the company has at its disposal. Lastly, inventory held for sale is an asset that represents products available for sale to customers. These distinctions highlight why money owed to suppliers is classified as a liability.