Which of the Following Is Classified as a Liability

question 18

Multiple Choice

Which of the following is classified as a liability?

• A) Wages expense
• B) Accounts payable
• C) Owners' drawings
• D) Retained profits

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Definitions:

Consumer Surplus

The divergence between what consumers are able and willing to shell out for a product or service and the actual cost they incur.

Marginal Benefit

The uplift in satisfaction or value derived from the consumption of an additional unit of a product or service.

Marginal Cost

An additional expense incurred from the production or acquisition of one more unit of a good or service.

Efficiency

The ability of a system or process to achieve a goal using the least amount of resources possible.