BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Accounts payable
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Accrued expenses
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Cash
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Notes payable
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Detailed explanation-1: -Which Account is not a Liability Account? (a) Account Payable (b) Accrued Expenses (c) Cash (d) Notes Payable. Cash is not a liability Account.
Detailed explanation-2: -Of the accounts payable, expenses accrued, cash, and notes payable, cash is not a liability account.
Detailed explanation-3: -A liability is something a person or company owes, usually a sum of money. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Detailed explanation-4: -The cash is a liability, because if the commercial bank goes back to the central bank and gives back the cash, the central bank will have to give back the loans (or government bonds). So while it’s true that cash is not backed by gold, it is still backed by something.