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4 December, 18:02

Which of the following statements is not true about liabilities? a. Liabilities are debts owed to outsiders. b. Liabilities do not include wages owed to employees of the company. c. Account titles of liabilities often include the term "payable." d. Cash received before a service is performed creates a liability.

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  1. 4 December, 18:15
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    Answer: b). Liabilities do not include wages owed to employees of the company.

    Explanation: Liabilities are debts owed by a company. They are obligations to be met by the company.

    Liabilities are payables such as unearned premium (cash received for an insurance service yet to be rendered), payables to contractors, payables to employees, premium overpayment, loans taken from banks and so on.
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