Identify the Account Below That Is Classified as a Liability

question 238

Multiple Choice

Identify the account below that is classified as a liability account:

• A) J. Jackson, Capital
• B) Equipment
• C) Accounts Payable
• D) Salaries Expense
• E) Cash

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Definitions:

Capital Gains

The profit from the sale of an asset or investment, where the sale price exceeds the purchase price.

Price Appreciation

An increase in the market value of an asset over time, often influenced by factors such as demand, inflation, and market conditions.

Risky Securities

Financial instruments that carry a high degree of investment risk due to the potential for significant fluctuations in value.

Riskless Securities

Financial instruments that are considered to have minimal risk of loss, typically issued by governments.