Which account is not a liability account? (2024)

FAQs

Which of the following is not considered a liability account? ›

The correct option is (d) Cost of goods sold. Cost of goods sold is an expense for business and would reflect in the income statement and not on the balance sheet. Accounts payable, unearned revenue, and wages payable are all obligation of the business and reflect on the balance sheet under liabilities.

Accounts receivable - this is not a liability account.

Bottom Line. Since an asset is cash or something that can be converted to cash, a checking account is considered an asset as long as it has a positive value. If your checking account is overdrawn, you owe your bank or credit union money, which makes it a liability.

Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out!

Answer: Contingent liabilities is not included in the total of Balance Sheet. The contingent liability will be disclosed in the notes to the financial statements.

Liabilities are any debts your company has, whether it's bank loans, mortgages, unpaid bills, IOUs, or any other sum of money that you owe someone else. If you've promised to pay someone a sum of money in the future and haven't paid them yet, that's a liability.

For instance, taxes and levies imposed by governments are not considered financial liabilities, as they are not contractual but are instead dealt with by IAS 12 and IFRIC 21 (IAS 32.

Trial Balance. Trial balance is not a type of account.

Accounts payable, notes payable, accrued expenses, long-term debt, deferred revenue, unearned revenue, contingent liabilities, lease obligations, pension liabilities, and income taxes payable are the ten types of liabilities in accounting that provide information about a company's financial obligations and ...

There are three primary classifications for liabilities. They are current liabilities, long-term liabilities and contingent liabilities. Current and long-term liabilities are going to be the most common ones that you see in your business.

Which of the following are liabilities to a bank? ›

Liability for a bank or financial institution is the customer's deposits that need to pay back in the future, whether in the short-term or in the long-term. A demand deposit is a liability for banks as a bank is liable to provide any amount that a customer is demanded at a particular time period.

Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses.

Examples of Current liabilities: bills payables, trade payables, creditors, bank overdraft, outstanding or accrued expenses, short-term loans or debentures, etc.

Liabilities refer to the debts or financial obligations of the business owed to others. Some examples of liabilities include, salaries owed to employees, products owed to customers, and payments owed to vendors, as well as notes payable, accounts payable, and sales taxes.