Table of contents

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

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Multiple Choice

Which of the following is an example of a sub-account of the liabilities general ledger (GL) account?

Accounts Payable

Retained Earnings

Sales Revenue

Prepaid Expenses

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Verified step by step guidance

Understand the concept of a general ledger (GL) account: A general ledger is a complete record of all financial transactions of a company, categorized into accounts such as assets, liabilities, equity, revenue, and expenses.

Focus on the liabilities category: Liabilities represent obligations or debts that a company owes to external parties, such as suppliers, lenders, or creditors.

Define sub-accounts: Sub-accounts are specific accounts under a broader category in the general ledger. For example, under liabilities, sub-accounts could include Accounts Payable, Notes Payable, or Accrued Expenses.

Analyze the options provided: Accounts Payable is a sub-account under liabilities because it represents amounts owed to suppliers for goods or services received. Retained Earnings, Sales Revenue, and Prepaid Expenses belong to other categories (equity, revenue, and assets, respectively).

Conclude that Accounts Payable is the correct example of a sub-account under the liabilities general ledger account.