Table of contents

Skip topic navigation

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

9. Current Liabilities

Types of Liabilities

Financial Accounting

9. Current Liabilities

Types of Liabilities

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following best describes a loan that is linked to a specific asset?

Secured liability

Unsecured liability

Current liability

Contingent liability

Previous problemNext problem

Verified step by step guidance

Understand the definitions of the terms provided in the options: Secured liability, Unsecured liability, Current liability, and Contingent liability.

A secured liability is a loan or obligation that is backed by a specific asset, meaning the lender has a claim on the asset if the borrower defaults.

An unsecured liability is a loan or obligation that is not backed by any specific asset, relying solely on the borrower's creditworthiness.

A current liability refers to obligations that are due within one year, such as accounts payable or short-term loans, and does not necessarily involve a specific asset.

A contingent liability is a potential obligation that depends on the outcome of a future event, such as a lawsuit, and is not directly linked to a specific asset.