Which of the Following Statements About Liabilities Is Not Correct

question 215

Multiple Choice

Which of the following statements about liabilities is not correct?

• A)Liabilities are amounts owed by a business.
• B)Liability accounts have a normal credit balances.
• C)Financing activities may affect the amount of liabilities.
• D)Examples of liabilities include Notes Payable,Common Stock,and Income Tax Payable.

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Definitions:

Arithmetic Sequence

A sequence of numbers in which each term after the first is obtained by adding a constant to the preceding term.

Common Difference

The gap between consecutive numbers in an arithmetic progression.

Partial Sum

The sum of a specified sequence of terms up to a certain number in the sequence.

Negative Exponent

Indicates that the base of the exponent should be reciprocated and the exponent made positive.