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 NOT considered a liability on the balance sheet?

Accrued Expenses

Accounts Receivable

Notes Payable

Unearned Revenue

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Verified step by step guidance

Step 1: Understand the definition of a liability. A liability is an obligation that a company owes to external parties, typically arising from past transactions or events, and is expected to be settled through the transfer of assets, services, or other economic benefits.

Step 2: Review each option provided in the problem and determine whether it meets the definition of a liability. For example, accrued expenses represent obligations for expenses incurred but not yet paid, which qualifies as a liability.

Step 3: Analyze 'Notes Payable.' This represents written promises to pay a specific amount of money at a future date, which is also a liability because it is an obligation owed by the company.

Step 4: Examine 'Unearned Revenue.' This represents money received from customers for goods or services that have not yet been delivered, creating an obligation to fulfill the service or deliver the goods, which qualifies as a liability.

Step 5: Evaluate 'Accounts Receivable.' This represents amounts owed to the company by customers for goods or services already provided, which is an asset, not a liability, because it reflects future economic benefits rather than obligations.