Which of the Following Is a Liability

question 10

Multiple Choice

Which of the following is a liability?

• A)Accounts Receivable
• B)An amount a company owes
• C)A resource a company owns
• D)Dividends

Distinguish between different types of liabilities and their classifications on the balance sheet.

Recognize the difference between a company’s operating cycle and fiscal year.

Understand the classification and characteristics of current assets.

Comprehend the process and significance of closing entries and how they relate to the owner's capital.

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Definitions:

Feedforward Control

A proactive approach to control that aims to identify and prevent potential problems before they occur, rather than addressing them post-event.

Harvest

The process of gathering mature crops from the fields or collecting the outcomes of any labor.

Organizational Control

Refers to the processes and procedures that businesses use to regulate and guide their operations towards achieving set objectives and standards.

Motivated Expert

An individual who possesses a high level of expertise in a specific area and has a strong drive or motivation to apply this expertise towards achieving defined objectives.