Palmer Hand Clinic has the following accounts and balances:
Cash, $2,350
Accounts Receivable, $280
Professional Equipment, $1,200
Office Equipment, $6,700
Accounts Payable, $4,380
P.Palmer, Capital, $2,000
Income from Services, $6,000
Rent Expense, $1,850
What is the amount of liabilities?

Question

Palmer Hand Clinic has the following accounts and balances: 
Cash, $2,350
Accounts Receivable, $280
Professional Equipment, $1,200
Office Equipment, $6,700
Accounts Payable, $4,380
P.Palmer, Capital, $2,000
Income from Services, $6,000
Rent Expense, $1,850
What is the amount of liabilities?

Quizplus · Accepted Answer

Liabilities are the debts or obligations that Palmer Hand Clinic owes to others. The only item in the list that represents a liability is Accounts Payable, with a balance of $4,380. Therefore, the amount of liabilities is $4,380.

Palmer Hand Clinic Has the Following Accounts and Balances