Detailed Explanation:

The correct answer is C. Accounts payable.

On a balance sheet, accounts payable is classified as a liability because it represents money the organization owes to suppliers or creditors for goods or services received but not yet paid for.

Liabilities are obligations of the organization and typically include:

accounts payable,

accrued expenses,

short-term debt,

and long-term obligations.

Why the other options are incorrect:

A. Accounts receivable

Accounts receivable is an asset, because it represents money owed to the company by customers.

B. Earnings before interest and taxes

This is a profitability measure used in financial analysis, not a balance sheet liability.

D. Operating expenses

Operating expenses are reported on the income statement, not treated as liabilities on the balance sheet unless separately accrued and unpaid.

Quality Management Excellence reference basis:

This answer fits the Quality Management Excellence approach of using correct classification and disciplined interpretation of organizational information. Accurate financial understanding supports sound management decisions, resource planning, and performance evaluation across the organization