A credit balance is normal and expected for the following accounts: Liability accounts such as Accounts Payable, Notes Payable, Wages Payable, Interest Payable, Income Taxes Payable, Customer Deposits, Deferred Income Taxes, etc. innersource|Points 7713| User: In double-entry accounting, where should you record money that is leaving your company to pay bills?A. Notes payable and deferred taxes.2. Want to see the step-by-step answer? A note payable due in 2 years. Solution for Which of the following accounts is a liability? E) rent arrears Organizations which combine the limited liability advantage of a partnership are called as? Which of the following would not be considered a contingent liability? A. B. Unearned subscriptions revenue. Of the following, which typically would not be classified as a current liability? c. Unearned Revenue. Accounts Receivable b. d. Prepaid Rent Expense. Question Title * Please choose an appropriate title for the question to answer it even easier . Which of the following is/are true about the sole trader form of business? A. 2. check_circle Expert Answer. C. Accrued interest payable. Which of the following accounts could be categorized as either a current or noncurrent liability depending on date the debt is due?1. Accrued liability balances are less material than accounts payable balances. Accounts Receivable. Deferred taxes and mortgages due in 30 years. Liability Accounts List. B. Service Revenue. a. mortgage payable b. accounts payable c. taxes payable d. wages payable Potential fines from the EPA B. D. Accrued liabilities at year-end will become accounts payable during the following year. Which of the following is not true about the Allowance for Doubtful Accounts? Check out a sample Q&A here. The accounts payable line item arises when a company receives a product or service before it pays for it. C) prepayment. In the debits column B. The opposite word of the liability is … Get an answer for 'Answer true or false to the following statements: For the trial balance to balance the debits must equal the credits. Indicate the financial statement on which the account belongs—income statement (IS), statement of owner’s equity (SOE), or balance sheet (BS)—in a format similar to the following. They are settled over a particular period. Which of the following items is not a current liability? Notes Payable: Money which the business owes to third parties which is represented by a written promise to repay at specified date and often bearing interest. C. Evidence supporting accrued liabilities is nonexistent, while evidence supporting accounts payable is readily available. Username * Please type your username .. E-Mail * Please type your E-Mail .. Liability is an obligation, that is legal to pay like debt or the money to pay for the services or the goods utilized. D) insurance due but unpaid. Which asset-liability combination would most likely result in the firm's having the greatest risk of technical insolvency? Which of the following is not classified as a current liability account? Service Revenue c. Unearned Revenue d. Prepaid Rent Expense Term debt, which is … Deferred taxes and mortgages due in 30 years. Trivia quiz which has been attempted 2185 times by avid quiz takers. Which of the following would likely be considered a long-term liability . A) It is a contra asset account. Which of the following accounts could be categorized as either a current or noncurrent liability depending on date the debt is due?1. Following are the common liability accounts: Accounts Payable: The amount that a business owes to outsiders, which is unpaid yet. Liabilities can be classified as current or non current. Long-term warranties and accounts payable. Label each of the following accounts as an asset (A), liability (L), owner’s equity (OE), revenue (R), or expense (E). D. Taxes payable. Accounts receivable normal balance: Accounts receivable is an asset on the left side of the accounting equation and is normally a debit balance. Hence, a credit balance in Accounts Payable indicates the … D. A six-month bank loan to be paid with … Note payable, due in 2 years C. Salaries and wages payable D. Income taxes payable 55. Accounts payable normal balance: Accounts payable is a liability on the right side of the accounting equation and is normally a credit balance. It can be defined as the obligation of the company which is to be paid in the future period. Accounts payable was $29.1 billion and is short-term debt owed by Apple to its suppliers. The normal balance of all liability accounts is a debit. In the credits column C. Also explore over 263 similar quizzes in this category. C) Rent . a. Long-term warranties Which of the following is not a current liability? Accounts payable B. C) It is used instead of reducing accounts receivable directly. These are to be settled via transfer of economic resources which can either be money, sale of goods or services. Using a 365-day year, the maturity value of a 180-day note for $2,700 at 9% annual interest is (rounded to the nearest cent) A. 4. A) Checking account . Which of the following current liability accounts is included in the adjustment of expenses to obtain cash flow from operating activities? They do not include interest and are established with an invoice outlining purchase details, credit terms, and shipping charges. Options. Want to see this answer and more? a. accounts payable b. note payable, due in 3 years c. salaries payable d. current portion of long term debt Which of the following accounts would not be included under the property plant and … D) It is debited when uncollectible accounts are written off. 3. The following points can be drawn from the definition above: A liability is a present obligation of a particular entity. 83.Which of the following liability accounts is likely to be satisfied without a future cash payment? B) It is a liability account. A) accrued wages. A. sales tax payable B. accounts payable C. unearned revenue D. income taxes payable 4. Correct! See Answer. which of the following accounts does not belong in the liability section of a balance sheet? C) Depreciation Expense . B. (a) A sole trader is liable to pay income tax on his/her earnings ... Types of Accounts MCQs. Estimated liability from cash rebate program. (a) S Type (b) PC (c) LLP (d) None. Wages payable. Accounts payable and current portion of long-term debt. ; A liability arises from a past transaction or event.They arise from purchase of inventory to be sold, purchase of office supplies and other assets, use of electricity, labor from employees, etc. A company might maintain subsidiary accounts for which of the following: accounts receivable accounts payable inventory all of the above 10. C. Accounts payable. Which of the following would you not include in the chart of accounts? Payments for these purchases occur within the company’s operating cycle. Question Which of the following is not a liability? A) Vehicle loan . B) creditor. Liabilities: Liabilities are listed on the balance sheet and represent the obligations of a company as of the balance sheet date. Which current liability situation does this best describe? Of expenses to obtain cash flow from operating activities a partnership are called?... 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