Asked by Karina Garcia on Jun 22, 2024
Verified
All of the following are classified as liabilities except:
A) Accounts Receivable.
B) Notes Payable.
C) Wages Payable.
D) Accounts Payable.
E) Taxes Payable.
Accounts Receivable
Accounts Receivable are amounts owed to a company by customers for goods or services delivered on credit, expected to be collected as cash.
Notes Payable
A written agreement to pay a specific amount to a lender at a future date, typically including interest payments, classified as a liability on the balance sheet.
- Become adept at distinguishing between assets, liabilities, and equity in account classification.
Verified Answer
KP
Kavina PatelJun 29, 2024
Final Answer :
A
Explanation :
Liabilities are obligations that a company owes to others, such as debts or payments due. Accounts receivable, on the other hand, are assets, representing money owed to the company by its customers. Therefore, A) Accounts Receivable is not classified as a liability.
Learning Objectives
- Become adept at distinguishing between assets, liabilities, and equity in account classification.