Which of the Following Accounts Belongs in the Liability Section

question 67

Multiple Choice

Which of the following accounts belongs in the liability section of a balance sheet?

• A) interest expense
• B) accumulated depreciation
• C) accounts payable
• D) preferred stock

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Definitions:

Planned Economy

An economic system where the government controls and regulates production, distribution, and prices.

Laissez-Faire Economy

an economic system with minimal government intervention, where transactions are dictated by private parties.

Central Direction

The control of economic or organizational activity by a central authority or government.

Past Income

The amount of money earned in preceding periods, often used to assess financial stability or creditworthiness.