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 would NOT be classified as a liability of a company?

Notes Payable

Accrued Expenses

Accounts Receivable

Unearned Revenue

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Verified step by step guidance

Step 1: Understand the definition of a liability. A liability is an obligation of a company arising from past transactions or events, which is expected to result in an outflow of resources (e.g., cash) to settle the obligation.

Step 2: Review the items listed in the problem: Notes Payable, Accrued Expenses, Accounts Receivable, and Unearned Revenue. Determine whether each item meets the definition of a liability.

Step 3: Analyze 'Notes Payable.' This represents a written promise to pay a specific amount of money at a future date, which qualifies as a liability because it is an obligation.

Step 4: Analyze 'Accrued Expenses.' These are expenses that have been incurred but not yet paid, which also qualify as liabilities because they represent obligations to pay in the future.

Step 5: Analyze 'Accounts Receivable.' This represents amounts owed to the company by customers for goods or services provided. Since it is an asset (not an obligation), it does NOT meet the definition of a liability.