Which of the Following Accounts Is NOT an Example of a Liability

question 76

Multiple Choice

Which of the following accounts is NOT an example of a liability?

• A) Wages payable
• B) Notes payable
• C) Accounts payable
• D) Accounts receivable

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Definitions:

Journal Entries

The recordings of financial transactions in the bookkeeping system of a business, which include the debits and credits affecting the company's accounts.

Par Value

The nominal or face value of a share of stock as designated by the issuing corporation, playing a role in legal capital requirements.

Fair Value

The estimated market price of an asset or liability based on current market conditions and mutually agreed-upon conditions by a buyer and a seller.

Stock Issuance Costs

Expenses incurred by a company while issuing new shares of stock, including legal, accounting, and underwriting fees.