Which of the Following Statements Is Not True About Liabilities

question 39

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 include insurance premium paid in advance.

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Definitions:

Predecessor

An individual or thing that has held a position or office before another.

Successor Appointment

The process of selecting and designating a new individual to take over a position or role previously held by someone else.

Karl Marx

A German philosopher, economist, and revolutionary socialist best known for his works on capitalism and communism, including the Communist Manifesto.

Max Weber

Max Weber was a German sociologist, philosopher, and political economist whose works on bureaucracy, social stratification, and the sociology of religion are foundational to modern sociology.