Which of the following best describes liabilities?

Liabilities refer to the debts or obligations that a business owes to outside parties, which can include loans, accounts payable, mortgages, and any other financial commitments that require the business to pay money or provide services in the future. This definition is foundational in accounting, where liabilities are tracked on the balance sheet and are categorized as either current (due within a year) or long-term (due in more than a year).

Understanding liabilities is crucial for grasping the overall financial health of a business. They play an essential role in assessing the company's leverage and long-term sustainability. Businesses incur liabilities to finance operations, but they must manage them carefully to ensure they can meet their obligations as they arise.

The other options provided define different elements of a business’s financial structure or operations. For instance, assets represent resources owned by the business, stockholder investments relate to equity contributions from owners or shareholders, and cash deposits held involve actual cash on hand or in the bank. These elements are distinct from liabilities, which specifically pertain to what the business owes. This distinction is vital for understanding the full picture of a business's financial situation.