Any Item on a Balance Sheet Labelled Payable Is a Liability

question 94

True/False

Any item on a balance sheet labelled payable is a liability of that company.

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Definitions:

Operating Activities

Part of the cash flow statement, these activities relate directly to the trading activities of the business, including the production, sales, and delivery of the company's products and services.

Cash Flows

The net amount of cash being transferred into and out of a business, especially affecting operating, investing, and financing activities.

Bank Loan

A type of loan provided by banks to individuals or businesses with an agreement to repay the borrowed amount along with interest over a specified period.

Operating Activities

business activities directly related to producing and delivering goods and/or services, which are the primary source of revenue for the company.