Which of the Following Accounts Is a Liability

question 1

Multiple Choice

Which of the following accounts is a liability?

• A) Accounts Payable
• B) Accounts Receivable
• C) Wages Expense
• D) Service Revenue

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Definitions:

Accounts Payable

An obligation to a lender recorded on an open account, typically relating to the acquisition of goods and services.

Creditor

A creditor is an entity (person or institution) that lends money or extends credit to another entity, with the expectation of being repaid in the future, possibly with interest.

Financial Accounting Ethics

Principles and standards guiding ethical behavior and practices in the field of financial accounting, focusing on honesty, transparency, and integrity.

International Accounting Standards

A set of accounting guidelines that aim to standardize accounting practices across countries, facilitating the comparison of financial statements globally.