Identify the Account Below That Is Classified as a Liability

question 172

Multiple Choice

Identify the account below that is classified as a liability in a company's chart of accounts:

• A)Cash
• B)Unearned Revenue
• C)Salaries Expense
• D)Accounts Receivable
• E)Supplies

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Definitions:

Underwriter

A professional or company that assesses and accepts the risk of another party, often used in insurance and securities issuing.

Initial Public Offering (IPO)

The first sale of stock by a company to the public, marking the transition from a private entity to a public company.

Gross Spread

The difference between the underwriting expense of a security and the amount received from the selling group.