Which of the following is a liability?
A)Drawings.
B)Prepaid insurance.
C)Accounts payable.
D)Cash at bank.

Question

Quizplus · Accepted Answer

Accounts payable is a liability because it represents amounts that a company owes to its suppliers or vendors for goods and services received but not yet paid for. Drawings, prepaid insurance, and cash at bank are not liabilities. Drawings refers to the money withdrawn by the owner from the business for personal use, prepaid insurance is considered an asset as it represents a future benefit, and cash at bank is also an asset.

Which of the Following Is a Liability