Which Items Would Be Classified as Liabilities

question 28

Multiple Choice

Which items would be classified as liabilities?

• A) Accounts payable, unearned revenue, pension liabilities.
• B) Common stock, retained earnings, bonds payable.
• C) Commitments and contingencies, additional paid-in capital, notes payable.
• D) Deferred taxes, accrued expenses, treasury stock.

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Definitions:

CEO Pay

The compensation package awarded to the chief executive officer of a corporation, which may include salary, bonuses, stock options, and other benefits.

Competitive Labor Market

A market in which workers compete for jobs and employers compete for workers, resulting in the equilibrium wage rate being determined.

Principal-Agent Problem

A conflict in priorities between a person or group (the agent) making decisions on behalf of another person or group (the principal).

Efficiency Wages

Efficiency wages are higher than market wages paid by employers to increase productivity, worker loyalty, and morale.