Which of the Following Is a Liability Account

question 22

Multiple Choice

Which of the following is a liability account?

• A)Accounts Receivable
• B)Cash
• C)Building
• D)Notes Payable

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Definitions:

Note Receivable

A financial asset representing a promise to receive a specific amount of money, plus interest, from another party within a defined time frame.

Return

In finance, it refers to the profit or loss made on an investment over a specified period, expressed as a percentage of the initial investment.

Common Stockholders' Equity

The portion of a company's equity that is attributable to common stockholders, calculated as total assets minus total liabilities minus preferred stock equity.

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.