Which of the Following Accounts Is an Example of a Liability

question 50

Multiple Choice

Which of the following accounts is an example of a liability?

• A)Bills payable
• B)Service revenue
• C)Building
• D)Accounts receivable

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Definitions:

Discount Rate

The specified interest rate for determining the present value of future cash flows in the context of discounted cash flow studies.

Payback Period

The time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Useful Life

The expected period of time during which an asset remains useful for the purposes for which it was acquired.

Payback Period

The amount of time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment itself.