Makayla is a corporate CPA working on a new budget. When she lists the company's liabilities, which of the following will she include?
A) employees' wages and salaries
B) owners' equity
C) marketable securities
D) computer software

Question

Quizplus · Accepted Answer

Liabilities are the debts and obligations a company owes to others. Employees' wages and salaries are liabilities because they will become payable in the future, and the company has an obligation to pay them. Owners' equity, marketable securities, and computer software are not liabilities. Owners' equity represents the owners' investment in the company, marketable securities are investments made by the company, and computer software is an asset the company owns.

Makayla Is a Corporate CPA Working on a New Budget