Which of the Following Is a Liability Account

question 67

Multiple Choice

Which of the following is a liability account?

• A) Service Revenue
• B) Building
• C) Prepaid Rent
• D) Unearned Revenue

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Definitions:

Corporate Form

The organizational structure of businesses incorporated under laws that treat the business as a legal person separate from its owners.

Separate Legal Entity

A legal concept that separates the identity of a corporation or limited liability company from its shareholders or owners, allowing it to own property, sue or be sued, enter contracts, and conduct business in its own name.

Personal Liability

The legal responsibility of an individual to repay debt or fulfill obligations from personal assets.

Partnership Form

An official business configuration where management roles and profit disbursements are shared among a few individuals.