Which of the Following Statements Is Not True About Liabilities

question 62

Multiple Choice

Which of the following statements is not true about liabilities?

• A) Liabilities are debts owed to outsiders.
• B) Account titles of liabilities often include the term "payable."
• C) Cash received before a service is performed creates a liability.
• D) Liabilities do not include wages owed to employees of the company.

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Definitions:

Merit Pay Plans

Compensation strategies that provide financial rewards to employees based on their performance achievements, aiming to motivate and retain talent.

Conventional Merit Pay

A traditional form of compensation where employees are rewarded based on their performance and achievements, typically evaluated through annual reviews.

One-Time Payment

A single, non-recurring payment made for a specific purpose or event.

Scanlon Plan

A gainsharing program designed to encourage collaboration among workers to increase productivity, with benefits shared among employees and management.