Which of the Following Statements Is NOT True About Liabilities

question 37

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 services are performed is considered to be a liability.
• D)Liabilities do not include wages owed to employees of the company.

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Definitions:

Square Root

A value that, when multiplied by itself, gives the original number; it is represented by √.

Directly Proportional

A relationship between two variables where they increase or decrease at the same rate.

Wind Speed

A measure of the velocity of air movement at a particular location over a specified period of time.

Directly Proportional

A relationship between two variables where their ratio is constant.