Which of the following statements about liabilities is not correct?
A)Liabilities are amounts owed by a business.
B)Liability accounts have a normal credit balances.
C)Financing activities may affect the amount of liabilities.
D)Examples of liabilities include Notes Payable,Common Stock,and Income Tax Payable.

Question

Quizplus · Accepted Answer

Notes Payable and Income Tax Payable are liability accounts;however,Common Stock is a component of stockholders' equity;it is not a liability account.

Which of the Following Statements About Liabilities Is Not Correct