Which of the following statements is not true about liabilities?
A) Liabilities are debts owed to outsiders.
B) Account titles of liabilities often include the term "payable."
C) Cash received before services are performed is considered to be a liability.
D) Liabilities include insurance premium paid in advance.

Question

Quizplus · Accepted Answer

Insurance premiums paid in advance are considered prepaid expenses, which are assets, not liabilities.

Which of the Following Statements Is Not True About Liabilities