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:

First-Assignment-In-Time Rule

A principle in law that gives priority to the party that first received the property or asset, often used in disputes over claims or ownership.

Emotional Intelligence

An ability to understand emotions and manage relationships effectively.

Contagious Emotions

The phenomenon where emotions experienced by one person can spread to others in their vicinity, affecting the overall mood and behavior.

Emotional Intelligence

The capacity to be aware of, control, and express one's emotions, and to handle interpersonal relationships judiciously and empathetically.