Liabilities Are

question 9

Multiple Choice

Liabilities are

• A)any accounts having credit balances after closing entries are made.
• B)deferred credits that are recognized and measured in conformity with generally accepted accounting principles.
• C)obligations to transfer ownership shares to other entities in the future.
• D)present obligations arising from past events and results in an outflow of resources.

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Definitions:

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, showing assets, liabilities, equity, revenue, and expenses.

Accounts Payable

Liability accounts on a company's balance sheet representing amounts owed to creditors for goods and services received but not yet paid for.

Prepaid Insurance

Payments made for insurance coverage before the coverage period begins, recorded as an asset on the balance sheet.

Corrected Trial Balance

A list of all the account titles and balances of a company after adjustments and corrections have been made.