A credit card bill is a liability.
Answer: Option 3.
Explanation:
Liability of a person is something that he owes towards some one. A liability is not possessed by the person totally on his own. It is to be given to some one else in one way or the other.
A liability is like a burden on a particular person. Since a credit card bill is to be paid to the company from which the credit has been taken, it has to be paid back to that company. So it is like a burden on Karen. Thus it is a liability to be paid off.
