Which of the Following Is NOT an Exact Liability

question 77

Multiple Choice

Which of the following is NOT an exact liability?

• A) FICA tax payable
• B) Income tax payable
• C) Warranty payable
• D) Accounts payable

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Definitions:

Prepaid Insurance

Insurance premiums paid in advance by a company, recorded as an asset on the balance sheet until the coverage period comes into effect.

Depreciation Expense

The allocated portion of the cost of a company's fixed assets that is written off each year, reflecting the asset's usage and wear and tear.

Insurance Premium

The amount paid periodically to an insurance company by policyholders for covering their risk.

Income Statement

The income statement is a financial document that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.