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 an example of a liability?

Unearned Revenue

Accounts Payable

Accrued Expenses

Notes Receivable

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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 result in an outflow of resources (e.g., cash, goods, or services).

Step 2: Analyze each option provided in the question: Unearned Revenue, Accounts Payable, Accrued Expenses, and Notes Receivable.

Step 3: Define each term: - Unearned Revenue: A liability that represents money received before goods or services are delivered. - Accounts Payable: A liability that represents amounts owed to suppliers for goods or services received. - Accrued Expenses: A liability that represents expenses incurred but not yet paid. - Notes Receivable: An asset that represents amounts owed to the company by others, typically documented in a formal agreement.

Step 4: Identify which term does not fit the definition of a liability. Since Notes Receivable is an asset (not a liability), it is the correct answer to the question.

Step 5: Conclude that Notes Receivable is NOT an example of a liability because it represents an asset, which is a resource owned by the company, rather than an obligation owed to others.