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

If a long-lost relative or friend were to leave you a lot of money, you might have to pay a(n):

accounts payable liability

estate tax liability

notes payable liability

unearned revenue liability

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Verified step by step guidance

Understand the concept of estate tax liability: Estate tax is a tax imposed on the transfer of the estate of a deceased person. It is typically calculated based on the value of the estate left to heirs or beneficiaries.

Review the other options provided: Accounts payable liability refers to amounts owed to suppliers for goods or services received. Notes payable liability refers to written promises to pay a certain amount of money, often related to loans. Unearned revenue liability refers to money received in advance for goods or services yet to be delivered.

Identify the context of the problem: The scenario involves receiving a large sum of money from a deceased relative or friend, which aligns with the concept of estate tax liability.

Clarify why estate tax liability is the correct answer: When inheriting money or assets, the recipient may be subject to estate taxes depending on the jurisdiction and the value of the inheritance.

Conclude that the other options do not apply to this scenario: Accounts payable, notes payable, and unearned revenue liabilities are unrelated to the inheritance of money or assets.