Which of the Following Is a Liability in a Balance

question 13

Multiple Choice

Which of the following is a liability in a balance sheet?

• A)Accounts receivable
• B)Cash
• C)Inventory
• D)Current assets
• E)Accounts payable

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Definitions:

Real Option

A choice made available to managers regarding investment opportunities, considering the flexibility to adapt to market changes.

Call

A contract that grants the holder the ability, though not the requirement, to purchase a certain quantity of an underlying asset at a predetermined price before a specified deadline.

Exercise Price

The set price at which an option's holder has the right to purchase (call) or sell (put) the underlying asset.

Stock Price

indicates the current price at which a share of a company can be bought or sold on a stock exchange.