Which of the Following Is an Example of a Liability

question 11

Multiple Choice

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

• A) Cash
• B) Owners' Capital
• C) Salaries Payable
• D) Wages Expense

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Definitions:

Nature and Function

A term often used to describe the properties and roles of different parts within a system or organization.

Basis of Accounting

The methodology under which revenues and expenses are recognized in the financial statements, examples include cash basis and accrual basis.

Statement of Activities

A financial report detailing the revenues, expenses, and changes in net assets of an organization, typically used by nonprofits.

GAAP Definition

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction, especially in the United States.