Identify the Account Below That Is Classified as a Liability

question 67

Multiple Choice

Identify the account below that is classified as a liability account:

• A)Cash
• B)Accounts Payable
• C)Salaries Expense
• D)Common Stock
• E)Equipment

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Definitions:

Acid-Test Ratio

A financial metric that measures a company’s ability to pay off its current liabilities with its quick assets (cash, marketable securities, and receivables).

Financial Data

Quantitative information about an entity's financial performance, including balance sheets, income statements, and cash flow statements.

Current Ratio

A financial metric that evaluates a corporation's capacity to meet its obligations due within a year by comparing its current assets to its current liabilities.

Financial Data

Information related to the financial activities of an entity, including income statements, balance sheets, cash flow statements, and more.