Examples of Liabilities Include

question 186

Multiple Choice

Examples of liabilities include:

• A)accounts payable and dividends.
• B)accounts payable and common stock.
• C)investments and note payable.
• D)accounts payable and long-term debt.

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Definitions:

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Double-Entry Accounting

A system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account.

Debits

Accounting entries that represent an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credits

Recognition or acknowledgment for something received or accomplished, often used in finance to denote money received or a decrease in liabilities.