Which of the following best describes liabilities?

Liabilities are best described as loans and debts that a business or individual owes to others. This definition encompasses any financial obligations that require payments in the future, such as mortgages, credit obligations, or any agreements that entail borrowing funds. In the context of hotel and lodging management, understanding liabilities is crucial for financial health; these obligations can significantly impact cash flow and the ability to invest in business growth.

Other choices present concepts that are distinct from liabilities. Savings accounts are considered assets because they represent money that is owned and can be utilized in the future. Assets are resources that can provide future economic benefits. Revenues pertain to the income generated from business operations, representing money earned rather than owed. Therefore, recognizing liabilities as loans and debts reflects their role as obligations that must be managed carefully for sustainable financial operations.