What Type of Account Is EI Payable

question 66

Multiple Choice

What type of account is EI Payable?

• A) Asset
• B) Liability
• C) Revenue
• D) Expense

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Definitions:

Expenses

Expenses refer to the outflows or consumption of assets or incurrence of liabilities during an accounting period, stemming from activities that drive revenue.

Income

Earnings obtained from work, investments, or business operations, reflecting the financial gain.

Net Income

Net Income is the total earnings or profit of a company after subtracting all expenses from revenue, indicating the financial performance over a specific period.

Income Statement

A financial statement that shows a company's revenues, expenses, and profitability over a specific accounting period.