All of the Following Are Examples of Legal Liabilities Except

question 8

Multiple Choice

All of the following are examples of legal liabilities except

• A)notes payable
• B)sales tax payable
• C)sick pay payable (may be taken as time off)
• D)property taxes payable

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Definitions:

Trading Securities

Short-term investments in debt or equity securities that a company intends to sell within a short period to generate profits on short-term price differences.

Comprehensive Income

Total non-owner changes in equity for a reporting period, which includes all recognized income and expenses, including those not included in the net income.

Unrealized Gain

The increase in value of an asset or investment that has not yet been sold for cash, and thus, the gain is not yet realized.

Available-for-Sale Investments

Financial assets not classified as held-to-maturity or trading securities, which can be sold in response to liquidity needs or changes in interest rates.