Which of the following is a liability account?
A)Accounts Receivable
B)Cash
C)Building
D)Notes Payable

Question

Quizplus · Accepted Answer

Notes Payable is a liability account because it represents money that the company owes to creditors or lenders, and it will need to be paid back at a future date. The other options listed are not liability accounts - Accounts Receivable is an asset account because it represents money owed to the company by its customers, Cash is an asset account because it represents money the company currently has on hand, and Building is a fixed asset account because it represents property or equipment owned by the company.

Which of the Following Is a Liability Account