Which of the Following Is a Liability Account

question 22

Multiple Choice

Which of the following is a liability account?

• A)Accounts Receivable
• B)Cash
• C)Building
• D)Notes Payable

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Definitions:

Financial Statements

Papers that offer a summary of a firm's financial status, featuring the balance sheet, income statement, and cash flow statement.

Income Statement

A financial report that shows a company's revenues, expenses, and net profit or loss over a specific period.

Balance Sheet

A document which condenses the details of a corporation's assets, liabilities, and owners' equity at a certain moment, offering a glimpse into its financial health.

Statement of Owner's Equity

A financial statement that shows changes in the equity of a company over a given period, including investments, withdrawals, and profit or loss.