Which of the following would be considered a liability?

A liability is defined as a financial obligation or debt that a business must settle in the future, which typically arises from past transactions or events. Long-term loans owed by a company fit this definition perfectly, as they represent amounts that the company is required to repay over an extended period. They are recorded on the balance sheet and signify a financial commitment that the business has to fulfill, thus categorizing them as liabilities.

In contrast, inventory, office equipment, and cash reserves are all assets. Inventory constitutes resources that a business plans to sell, while office equipment is a tangible long-term asset used in the operations of the business. Cash reserves represent liquid assets that the company holds and can use for operational needs or investments. Therefore, these three options do not meet the criteria of liabilities but rather reflect the company's resources and financial health.