Identify the Account Below That Is Classified as a Liability

question 24

Multiple Choice

Identify the account below that is classified as a liability in a company's chart of accounts:

• A) Cash
• B) Accounts Receivable
• C) Supplies
• D) Salaries Expense
• E) Unearned Revenue

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may not reflect the market value.

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating a negative financial performance for a specific period.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits through dividends.

Share Earnings

Often referred to as earnings per share (EPS), it's the portion of a company's profit allocated to each outstanding share of common stock.