Which of the Following Liability Accounts Is Usually Not Satisfied

question 63

Multiple Choice

Which of the following liability accounts is usually not satisfied by payment of cash?

• A)Trade payables.
• B)Unearned revenues.
• C)Taxes payable.
• D)All of the mentioned are satisfied by paying cash.

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Definitions:

Total Surplus

The sum of consumer and producer surplus, representing the total benefit to society from the production and consumption of goods and services.

Consumer Surplus

The contrast between what consumers can and will pay for a good or service and their actual expenditure on it.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the amount they actually receive (market price).

Total Surplus

The sum of consumer surplus and producer surplus, representing the total net benefit to society from a market transaction.