Asked by Sherwin Sanpedro on Jul 05, 2024
Verified
Which of the following accounts is not included in the liability section of the balance sheet?
A) Accounts receivable.
B) Wages payable.
C) Accounts payable.
D) Notes payable.
E) Taxes payable.
Liability Section
A portion of the balance sheet that lists a company's obligations and debts, including both current and long-term liabilities.
Accounts Receivable
Accounts receivable are amounts owed to a business by customers for goods or services delivered but not yet paid for.
- Comprehend the categorization of accounts into assets, liabilities, and equity.
Verified Answer
FH
Frank HendricksJul 11, 2024
Final Answer :
A
Explanation :
Accounts receivable is actually an asset account that represents amounts owed to the company by its customers. All other choices (B, C, D, and E) are liability accounts that represent amounts owed by the company to its creditors or other parties.
Learning Objectives
- Comprehend the categorization of accounts into assets, liabilities, and equity.