Which of the following accounts is a liability?
A) Accounts Payable
B) Accounts Receivable
C) Wages Expense
D) Service Revenue

Question

Quizplus · Accepted Answer

Accounts Payable is a liability account because it represents money owed by a business to its vendors or suppliers for goods or services received but not yet paid for. Accounts Receivable represents money owed to a business by its customers and is therefore an asset. Wages Expense and Service Revenue are both income statement accounts and not balance sheet accounts, therefore they are not liabilities.

Which of the Following Accounts Is a Liability